NVIDIA (NVDA) Gets Buy Rating Despite China Chip Ban – Here’s Why Analysts Are Still Bullish

We recently published a list of 10 AI Stocks on Analyst’s Radar Today. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks that are on analyst’s radar today.

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

On May 27, Analyst Joseph Moore of Morgan Stanley maintained a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA) and retained the price target of $160.00.

Moore’s rating reflects optimism in Nvidia’s stock despite the challenges it is currently facing. In particular, the company has been dealing with the H20 chip ban, where it is not allowed to sell its H20 chip to China.

NVIDIA (NVDA) Gets Buy Rating Despite China Chip Ban - Here’s Why Analysts Are Still Bullish

A close-up of a colorful high-end graphics card being plugged in to a gaming computer.

The ban has been impacting Nvidia’s sales to the country, which has not been completely accounted for in consensus estimates. It has also led to a significant inventory write-down, the firm noted. However, it is expected of Nvidia’s management that they mitigate this impact by improving other products’ supply, such as the Blackwell line.

Moore also noted how the H20 ban is a short-term headwind, but demand for other products is still robust. Blackwell products have supply constraints, which are expected to ease. Major tech companies such as Amazon and Microsoft have also given out positive comments regarding growth trends, which further reiterate Moore’s optimistic outlook.

Overall, NVDA ranks 2nd on our list of AI stocks that are on analyst’s radar today. While we acknowledge the potential of NVDA as an investment, 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.