NVIDIA Corp (NASDAQ:NVDA) shares are moving higher on Friday following reports that the Trump administration has begun a formal review that could pave the way for the first shipments of Nvidia’s H200 AI chips to China.
NVIDIA stock is showing exceptional strength. Why are NVDA shares rallying?
What Happened: Reuters reports that the U.S. Commerce Department has forwarded license applications for H200 exports to the State, Energy and Defense Departments. Those agencies now have 30 days to weigh in under export‑control rules, though the final call will be made by President Donald Trump.
Earlier this month, President Trump signaled he would allow H200 sales to China, with the U.S. government collecting a 25% fee. He argued that permitting these sales could help U.S. chipmakers stay ahead of Chinese competitors by reducing demand for domestically produced Chinese chips.
Current officials, led by White House AI adviser David Sacks, argue that allowing H200 shipments could discourage Chinese companies like Huawei from accelerating efforts to match Nvidia’s and AMD’s most advanced chip designs.
NVDA Analyst Ratings
Nvidia has recently attracted positive attention from financial analysts, with all five of the most recent ratings maintaining a bullish stance on the stock. Among them, Truist Securities maintained its “Buy” rating and increased the target price from $255.00 to $275.00 on Dec. 19. Tigress Financial was the most optimistic, maintaining a “Strong Buy” rating and setting a target price at $350.00, a significant increase from the previous $280.00.
Earlier in the month, Morgan Stanley maintained an “Overweight” rating for Nvidia and set a target price of $250.00, which was an increase from the previous $235.00. On Nov. 20, both Citigroup and Barclays maintained their positive ratings – “Buy” and “Overweight” respectively. They set their target prices at $270.00 and $275.00, up from their previous targets of $220.00 and $240.00.
NVDA Price Action: Nvidia shares were up 2.95% at $179.28 at the time of publication on Friday, according to Benzinga Pro.
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