NVIDIA Corporation (NVDA) Faces China H200 Tariff Headwind, Yet Wolfe Stays Bullish

NVIDIA Corporation (NASDAQ:NVDA) is among the stocks with the best earnings growth for the next 5 years. On January 15, Wolfe Research maintained an ‘Outperform’ rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $250. In line with the consensus 1-year median price target, the price target reflects an upside potential of 33.60%. This follows the 25% tariff announcement by White House on some advanced semiconductors, which is likely to impact NVIDIA’s H200 shipments to China, the firm says.

Wolfe Research highlights that this tariff imposition will allow the U.S. government to collect a predetermined payment in return for allowing NVIDIA Corporation (NASDAQ:NVDA) to export H200 chips to China. The firm suggests that a complete resolution will possibly be included in broader trade negotiations between the two countries.

NVIDIA’s Strategic Partnership With Synopsys Aims to Accelerate AI-First R&D

According to Investing.com, NVIDIA Corporation (NASDAQ:NVDA) had earlier indicated that China shipments could represent $2 billion to $5 billion per quarter, nearly 5% of the company’s current quarterly revenue, only if they are granted approval for such exports.

NVIDIA Corporation (NASDAQ:NVDA) is a California-based computing infrastructure company that offers graphics, compute, and networking solutions. Incorporated in 1993, the company is committed to enhancing computing to address the toughest challenges.

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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