By Adam Clark
Nvidia is facing more challenges when it comes to selling its artificial-intelligence chips to China. But analysts are still backing the stock to get out of its rut.
Nvidia continues to be dogged by uncertainty over whether it will be able to sell its H200 chips to Chinese companies. Around $30 billion in potential revenue this year is at stake as the company waits to see if Beijing will permit the sales.
Manufacturers in the supply chain for Nvidia's H200 chips -- designed specifically for the Chinese market -- have paused production after customs officials blocked shipments of the hardware, the Financial Times reported Saturday.
Nvidia didn't immediately respond to a request for comment early on Monday.
Further obstacles to China sales are a blow for Nvidia, which is trading at about $186 a share, roughly the same levels as it was last August despite expectations of significant growth in its latest fiscal year. When it comes to AI plays, investors are instead piling into shares of Google-parent Alphabet, which makes hardware which competes with Nvidia's AI processors, as well as memory-chip stocks like Micron Technology.
But that isn't shaking Wall Street's confidence in Nvidia's revival. Jefferies analyst Blayne Curtis last week raised his Nvidia target to $275 from $250. RBC analyst Srini Pajjuri initiated coverage of the stock with an Outperform rating and $240 target price.
"Compared with [other] Mag7 stocks, Nvidia is trading at a 15% discount, despite stronger growth potential and higher margins," Pajjuri wrote.
The average price target on Wall Street for Nvidia shares is around $260 according to a FactSet poll. The stock trades at a forward price-to-earnings ratio of less than 25 times, which RBC's Pajjuri notes is at the lower end of its three-year range of between a 20 times and 60 times multiple.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
January 19, 2026 05:57 ET (10:57 GMT)
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