NVIDIA (NVDA) Gets Green Light for China Sales, Analysts See EPS Upside Ahead

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Gaining Attention on Wall Street. On July 15, Bernstein maintained its “Outperform” rating on the stock with a $185 price target. Several analysts raised their forecasts for the stock after Nvidia managed to win the approval of the US government for the sale of its H20 chips to China.

Analyst Stacy Rasgon said that even though Nvidia’s second-quarter results are unlikely to see the company ship enough chips to catch up on lost revenue, it is likely to witness the benefits in the second half that ends next January.

“Beyond the revenue/earnings recovery, we are glad to see NVDA able to compete at least somewhat in China as it limits potential for more structural risks. We always saw the H20 ban as unnecessary and, frankly, somewhat nonsensical as performance of the part is already low, and well below already-available Chinese alternatives; a ban would simply hand the AI market in China over to Huawei as well as encourage the growth of local ecosystem alternatives (with a risk that they filter out of China over time).”

“[E]very ~$10B of recovered NVDA China revenues would drive roughly 25 cents in additional EPS. Therefore, capturing an incremental $15-$20B in China revenue through the rest of the fiscal year would provide 40-50 cents in EPS upside for FY2026, all else being equal (10%+ or so accretion on current consensus?).”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, providing high-performance GPUs and platforms that power data centers, autonomous vehicles, robotics, and cloud services.

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