Nvidia shares rise as the company plans to release new AI chips for the Chinese market, despite U.S. export controls, highlighting strong demand and bullish analyst sentiment.
Shares of Nvidia moved higher on Mondays early trading, as Nvidia is planning on providing a new version of AI chips for the Chinese market. China was responsible for $10.4 billion in revenue for Nvidia just in the past year which shows the growing demand for these chips. As AI continues to dominate the markets, Nvidia plans to provide ramped up new products that are specifically for China that are a work around the export control license that was put into place.
Analysts stand still bullish as the continuous sentiment of Nvidia remains mostly positive. With price targets of $150 per share, Nvidia currently trades at around $119 after the small spike in trading volume this morning as news circulates around the new B20 chip that will primarily be sold to China with an estimated delivery in the second quarter of 2025. US sanctions caused a slippage from total revenue of Nvidia associated with China's AI demand from 26% from the past 2 years to this year end January of 17%.
The Biden administration had news circulating on potentially having the ability to halt products sold if made using American technology to be sold foreignly. This caused Chip stocks to tumble last week seen in the markets. Sales prospects are rapidly growing as Nvidia is on track to sell over 1 million of its H20 chips in China alone. This equates to $12 billion in revenue according to a research group SemiAnalysis.
