Nvidia Shares Near 52-Week High After US-China AI Chip Export Deal

Nvidia's stock has surged near its 52-week high, driven by strong AI demand and a new agreement allowing the company to resume sales of its H20 AI chips to China by paying 15% of the revenue from these sales to the U.S. government. Analysts from Wells Fargo, Morgan Stanley, Citi, and Loop Capital have raised their price targets on Nvidia, citing robust demand in data center AI chips and Nvidia's dominant position in the semiconductor market. The Trump administration's chip export restrictions, initially halting Nvidia's China sales, have been partially lifted with this revenue-sharing deal, although some experts question its strategic rationale. Nvidia also recently launched new AI-focused products, including the RTX PRO 6000 Blackwell Server GPU and advanced AI software libraries, positioning itself to capitalize on growing AI infrastructure spending across industries. Wells Fargo's Aaron Rakers highlighted that while sales to China may be limited, they still represent valuable revenue, justifying his increased price target to $220. This momentum reflects optimism that Nvidia will continue to deliver strong quarterly results amid the accelerating AI boom.