Taiwan Export Data Signals Potential Upside for Nvidia (NVDA)

A is one of the 10 Trending AI Stocks According to Analysts. Recent Taiwan data is strengthening the bullish case for AI chipmaker Nvidia. On February 10, UBS analyst Timothy Arcuri reiterated a Buy rating on the stock with a $235.00 price target. Firm analysts point to robust Taiwan ADP export data which reinforce confidence in earnings upside.

The firm highlighted how Taiwan’s Ministry of Finance released January export data showing Automatic Data Processing equipment (ADP) excluding laptops reached $22.6 billion. This is an 8% month-over-month increase from December’s $20.9 billion, well ahead of normal seasonal trends which typically show a 4% monthly decline.

According to the data, the higher export run rate that began in October ($22.2 billion versus September’s $14.1 billion) has stabilized with little monthly variance in December and January.

Taiwan’s ADP exports now stand at $66.2 billion for the full fiscal fourth quarter, a 25% quarter-over-quarter increase, and well ahead of the estimated 18% Q/Q growth it modeled for NVDA data center revenue.

“This is well ahead of the ~18% Q/Q growth we model for NVDA data center revenue, so while this data has decoupled with NVDA’s results in recent periods, Taiwan ADP exports would appear to support additional upside in the NVDA print.”

The firm also recently highlighted SIA December data, which came in above seasonal trends.

“The next read will be TSMC January sales, likely to be out Friday.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

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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Disclosure: None. This article is originally published at Insider Monkey.