Nvidia (NVDA) Tariff Impact Seen as Limited, Wolfe Research Says

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Analysts Are Watching Closely. On January 15, Wolfe Research analyst Chris Caso reiterated an Outperform rating on the stock with a $250.00 price target. Firm analysts see minimal impact from newly announced tariffs, calling it a mechanism for pre-agreed payments.

The White House recently announced a 25% tariff on certain advanced semiconductors, anticipating it to be application on Nvidia’s H200 shipments to China. Wolfe Research noted how this tariff mechanism allows the U.S. government to collect an pre-agreed payment in exchange for granting NVIDIA permission to export H200 chips to China.

“That payment was arranged as a tariff, and is applied as the H200 is imported to the US, before being transshipped to China. That unusual arrangement provides a legal framework for the government to collect the agreed payment. Therefore, this announcement only provides the mechanism for what was agreed earlier and therefore isn’t materially new.”

Analysts further noted how Nvidia previously indicated that $2–5B/qtr of China shipments would be possible if they had permission for such shipments. While the US has allowed them to ship, China is yet to provide permission from their end.

“This arrangement would also apply to AMD China shipments as well, should AMD choose to pursue the opportunity. Our discussions with AMD management however suggest that China shipments are a much lower priority to AMD, due to capacity constraints and higher value opportunities elsewhere.”

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

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Disclosure: None.