Market Overview - U.S. stock and bond markets experienced a brief recovery after a turbulent period related to AI stocks, with focus shifting to upcoming economic reports [1] - The mood around the artificial intelligence sector is currently unstable, with significant declines in shares of Oracle and Broadcom, impacting Nvidia as well [2] Company Performance - Nvidia is reportedly considering increasing production capacity for its H200 AI chips due to high demand, which may positively influence its stock performance [3] - Micron is scheduled to report its earnings later in the week, which could also affect market sentiment [3] Sector Rotation - A notable sector rotation is occurring as the year ends, with the Nasdaq index dropping 1.6% while the Dow Jones Industrial Average gained 1% and reached a record high [4] Bond Market Dynamics - Long-dated Treasuries faced pressure, with the 30-year bond yield reaching three-month highs, and the yield curve steepening to its widest since September [5] - Upcoming events include a significant payrolls report and a 20-year U.S. bond auction, which are expected to influence bond market movements [6] Federal Reserve Leadership Speculation - President Trump has narrowed down candidates for the next Federal Reserve chair to Kevin Warsh and Kevin Hassett, with market perceptions of their chances fluctuating following his comments [7]

Core Insights - NVIDIA Corporation is being closely monitored by analysts as a leading player in the AI sector, with Bank of America maintaining a "Buy" rating and a price target of $275, citing its dominant position in AI compute and networking markets [1][2]. Financial Analysis - The $275 price target is based on a 28x CY27E PE excluding cash, which falls within NVIDIA's historical PE range of 25x-56x, justified by its leading market share in the rapidly growing AI sector, despite some concerns regarding global AI project volatility and the cyclical nature of the gaming market [2]. - Analysts have a consensus "Buy" rating for NVIDIA, with an average price target of $250 indicating a potential upside of 36%, while the highest target of $432 suggests a significant upside of 135.49% [3]. Market Developments - Recent developments include U.S. President Donald Trump's approval for NVIDIA to sell its H200 AI chips to China, which was previously restricted. This new approval includes a revenue-sharing requirement aimed at curbing China's chip industry growth [2][3]. - NVIDIA specializes in AI-driven solutions across various sectors, including data centers, self-driving cars, robotics, and cloud services, highlighting its diverse application potential in the tech industry [4].

Nvidia has told Chinese clients it is evaluating adding production capacity for its powerful H200 AI chips after orders exceeded its current output level, according to two sources briefed on the matte... ...

Donald Trump is letting Nvidia sell its H200 AI chips to China. Beijing has a long list of reasons to spurn the offer https://t.co/P1XoeKS9dk ...

China AI: US will allow H200 sales to China, but will China buy? Qingyuan Lin, Ph.D. +852 2123 2654 qingyuan.lin@bernsteinsg.com Zheng Cui +852 2123 2694 Francis Ma +852 2123 2626 francis.ma@bernsteinsg.com On December 8th (U.S. time), President Trump announced via his social media platform that the U.S. government will allow Nvidia (O, covered by Stacey A. Ragson) to sell its H200 AI chips to China, with a 25% revenue share from such sales to be paid to the U.S. government. The policy excludes sales of mor ...

In Brief Nvidia is allegedly testing software that can track the location of its AI chips as reports of its chips being smuggled into China are on the rise.Nvidia has built location verification technology that would allow it to track which country a chip is located in, Reuters originally reported, citing anonymous sources. This software tracks computing performance but the delay in communication between servers also offers a sense of a chip’s location. This software will be optional for customers to use a ...

The skeptics may doubt that the rally is sustainable and might see $500 as an impossible dream. Yet, as the data will reveal, NVIDIA is a chip-making powerhouse in the age of artificial intelligence (AI). So, keep an open mind as NVIDIA stock's upside potential is considerable. Is NVIDIA the Next Cisco? It's the darling of the financial markets and the undisputed heavyweight champion among U.S.-based processor producers. Truly, NVIDIA (NASDAQ:NVDA) is roundly revered and to many traders, NVIDIA seems unstop ...

The artificial intelligence (AI) behemoth and the chip giant NVIDIA Corp.’s (NVDA) stock has gained about 34% so far this year. The returns are solid but not great, as the stock has surged about 1150% since the start of 2023.Since then, the stock has seen an immensely sharp and steady momentum on the AI boom, but hit a roadblock in early 2025 due to Trump’s tariff concerns. However, the slip was momentary as the NVDA stock rebounded from late April 2025.Let’s find out what awaits NVDA shares in 2026.NVIDIA’ ...

Core Viewpoint - Nvidia's stock has shown significant recovery and growth, driven by advancements in AI technology and strategic developments in U.S.-China trade relations [1][2][12]. Company Performance - Nvidia's shares increased by 3.0% in the past week and are up 29.7% over the last six months, outperforming major indices [1]. - The company reported a record revenue of $57.01 billion in the third quarter, with $51.2 billion coming from the data center division, marking a 66% year-over-year increase [9]. - Nvidia's capital expenditures surged over 200% this year to more than $3 billion to meet the demand from hyperscalers [9]. Market Dynamics - The AI market is projected to grow at a 37% CAGR through 2030, supporting Nvidia's revenue forecast of $170 billion for fiscal 2026, a 30% increase from $130.5 billion in 2025 [8]. - Nvidia's automotive segment also saw a 32% year-over-year increase to $592 million, driven by partnerships with companies like Toyota and Aurora Innovation [11]. Strategic Developments - Nvidia is developing location verification technology to prevent chip smuggling and has received approval to sell advanced H200 AI chips to China [1][7]. - The company plans to supply over 260,000 advanced GPUs to South Korean firms, indicating strong international demand [7]. Analyst Sentiment - Of 64 analysts covering Nvidia, 60 recommend buying shares, with a consensus one-year price target of $250.93, indicating a potential upside of about 36% from the current price [13]. - Citigroup, J.P. Morgan, and Morgan Stanley have maintained their Buy-equivalent ratings, citing strong demand and revenue growth [14]. Risks and Challenges - Ongoing U.S.-China trade restrictions and tariffs pose risks to Nvidia's supply chain and profitability, with analysts warning of potential margin pressure [4][5][10]. - The company faces competition from Huawei's Ascend chips and other emerging technologies, which could impact its market position [5][15].

President Trump said Nvidia will be allowed to sell its H200 AI chips in China, with a 25% cut of sales going to the U.S. government. https://t.co/1qY6pMdICG ...