Nvidia Bounces Back: Analysts See 78% Upside as China Business Revives
Nvidia's stock price jumped 3.7% on Wednesday, extending its winning streak to three sessions in a row and posting its largest one-day gain in over a month.
The rally was fueled by tech rotation and a report suggesting that Nvidia's China business might be reviving. The Information reported that select AI companies will be allowed to buy Nvidia's H200 chips, with Chinese giants Alibaba Group, ByteDance, and DeepSeek set to receive approval.
Nvidia's China business has struggled, with CEO Jensen Huang recently stating it had dropped to zero. However, Bank of America analysts argue that the market is underestimating Nvidia's dominant position and its capacity to absorb pressures like high memory prices and custom chip development.
The analysts reiterated their 'Buy' rating and set a price target of $350, implying 78% upside from the current stock price. Currently, 58 out of 61 analysts recommend 'Buy' or higher for NVDA, with an average price target of $301.62 suggesting a 48% upside.