NVIDIA Corporation (NVDA) Faces China H200 Tariff Headwind, Yet Wolfe Stays Bullish

NVIDIA Corporation (NASDAQ:NVDA) is among the stocks with the best earnings growth for the next 5 years. On January 15, Wolfe Research maintained an ‘Outperform’ rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $250. In line with the consensus 1-year median price target, the price target reflects an upside potential of 33.60%. This follows the 25% tariff announcement by White House on some advanced semiconductors, which is likely to impact NVIDIA’s H200 shipments to China, the firm says.

Wolfe Research highlights that this tariff imposition will allow the U.S. government to collect a predetermined payment in return for allowing NVIDIA Corporation (NASDAQ:NVDA) to export H200 chips to China. The firm suggests that a complete resolution will possibly be included in broader trade negotiations between the two countries.

According to Investing.com, NVIDIA Corporation (NASDAQ:NVDA) had earlier indicated that China shipments could represent $2 billion to $5 billion per quarter, nearly 5% of the company’s current quarterly revenue, only if they are granted approval for such exports.

NVIDIA Corporation (NASDAQ:NVDA) is a California-based computing infrastructure company that offers graphics, compute, and networking solutions. Incorporated in 1993, the company is committed to enhancing computing to address the toughest challenges.

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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