Nvidia To Regain Access to China With H200 Exports—UBS Stays Bullish With $235 PT

Core Viewpoint - NVIDIA Corporation is gaining attention as a leading AI stock, with UBS maintaining a "Buy" rating and a price target of $235, driven by potential export permissions for AI chips to China [1]. Group 1: Export Permissions and Market Position - The US Commerce Department is considering allowing NVIDIA to export Hopper H200 chips to China, while exports of Blackwell generation chips are currently not permitted [2]. - NVIDIA's potential approval to export chips is seen as leveling the competitive landscape, as AMD has already secured licenses for its MI308 chips to China, which may incur a 15% tax on shipments [2]. Group 2: Market Opportunity and Projections - NVIDIA is well-positioned to capture a significant share of the projected $50 billion AI total addressable market (TAM) in 2025, with estimates suggesting that domestic Chinese alternatives may only supply around $10 billion, or 20% of the market [3]. - The estimated domestic AI market in China is approximately 2 million units, with NVIDIA's TAM in China projected at $50 billion annually by calendar year 2025 [3]. Group 3: Investment Considerations - While NVIDIA shows potential as an investment, there are other AI stocks that may offer greater upside potential and lower downside risk [4].