No Pre-Payments Needed: NVIDIA Clarifies Terms on H200 Chip Sales to China

NVIDIA Corporation (NASDAQ:NVDA) is among the most profitable US stocks to buy. On January 14, Reuters’ Liz Lee and Liam Mo reported that NVIDIA Corporation (NASDAQ:NVDA) denied reports that Chinese customers would need to pay upfront for H200 chips, stating that it “would never require customers to pay for products they do not receive.” This follows the Reuters story on January 8, which claimed that the company has imposed strict terms on Chinese customers pursuing its AI chips, requiring full upfront payment.

Earlier on January 8, Piper Sandler maintained an ‘Overweight’ rating on NVIDIA Corporation (NASDAQ:NVDA), with an unchanged $225 price target. The firm named the company its top large-cap data center pick for the calendar year. From continued technological leadership to expanding strategic partnerships and a comprehensive software stack, the firm cited several reasons for its bullish stance.

Piper Sandler also noted the company’s solid valuation at nearly 24.5 times price-to-earnings ratio on a next-twelve-months basis. The firm is confident in NVIDIA Corporation (NASDAQ:NVDA)’s anticipated performance gains from its Vera Rubin rack, which is projected to deliver meaningful returns in the latter half of this year.

NVIDIA Corporation (NASDAQ:NVDA) is a California-based company that delivers graphics, high-performance computing, and networking solutions. Founded in 1993, the giant operates through Compute & Networking and Graphics segments.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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