Wells Fargo Analyst Upgrades Evaluation of NVIDIA Corporation (NVDA)

Core Viewpoint - Wells Fargo analyst Aaron Rakers upgraded his evaluation of NVIDIA Corporation (NASDAQ:NVDA) following the Trump Administration's plans to remove export restrictions on the company's H200 chips to China, which could generate significant revenue and earnings growth [1] Group 1: Analyst Upgrades and Financial Impact - The removal of export restrictions on NVIDIA's H200 chips is seen as an "incremental positive" that may lead to an annual revenue increase of $25 billion to $30 billion and boost earnings by 60-70 cents per share [1] - NVIDIA is still rated as Overweight by Wells Fargo, with a price target set at $265 [1] Group 2: Regulatory Challenges in China - Despite the U.S. export license, Beijing regulators are expected to restrict access to NVIDIA's H200 processors, complicating the supply situation for American chipmakers in the Chinese market [2][3] - Chinese officials are currently debating how to grant restricted access to NVIDIA's second-generation AI processor, the H200, which may hinder American chipmakers' ability to supply the Chinese market [3] Group 3: Market Reaction and Stock Performance - Following the news, NVIDIA shares initially gained up to 2% in premarket trading but later reduced to a 0.6% increase [4] - NVIDIA shares have increased by 32.88% year-to-date as of December 10 [4]