Nvidia Stock Soars on Trade Hopes, Eyeing $150 Amidst China Market Potential

Nvidia’s stock price has surged 3.8% over the past five days, reaching $142.25 in pre-market trading Wednesday. This upward trend follows last week’s better-than-expected earnings report and growing optimism surrounding potential easing of US export restrictions.

The positive momentum is fueled by renewed hope for US-China trade talks. Reports indicate that direct conversations between Presidents Trump and Xi are underway, focusing on easing restrictions on advanced AI GPU chips, including Nvidia’s H20. These restrictions have cost Nvidia an estimated $2.5 billion in revenue last quarter, but the company recently booked $8 billion in H20 orders, demonstrating significant pent-up demand.

Nvidia estimates the Chinese AI GPU market could reach $50 billion within three years. Despite current trade barriers, the company already generated $44 billion in revenue, a 66% year-over-year increase. Further bolstering the positive outlook is President Trump’s suspension of the Biden administration’s “AI Diffusion” rule, which imposed tiered restrictions on technology exports based on geopolitical considerations.

Analysts have issued bullish price targets following Nvidia’s strong earnings. Mizuho Securities predicts a price range of $160 to $180, while UBS analysts set their target at $175, representing a potential 16% to 23% increase from current levels. Nvidia’s guidance of $45 billion in revenue for the current quarter further supports this optimism.

Technically, Nvidia’s stock is trading around $140.30. A sustained move above this level could trigger a rally towards $143.60 and potentially $145. However, a drop below $140.30 could invite selling pressure, with support levels at $138.20 and $136.20.

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