TLDR
- Nvidia stock traded flat at $185.00 in premarket as uncertainty over Chinese H200 chip orders continues to weigh on shares
- CEO Jensen Huang says demand for the H200 chip in China is “very high” with orders exceeding two million units
- Beijing authorities asked some Chinese tech companies to pause H200 orders while evaluating domestic chip alternatives
- KeyBanc maintains Overweight rating with $275 price target, expecting 1.5 million H200 chips to ship to China this year
- Analyst expects Nvidia stock to rally when focus shifts to next-generation Vera Rubin platform launching in second half 2026
Nvidia shares remained stuck in neutral on Tuesday morning as questions swirl around potential sales of the company’s H200 chips to Chinese customers. The stock traded flat at $185.00 in premarket trading after rising less than 0.1% on Monday.
NVIDIA Corporation, NVDA
The chip maker has been range-bound for several months despite what CEO Jensen Huang describes as “very high” demand for the H200 chip in China’s AI sector. Speaking at the CES trade show last week, Huang said he doesn’t expect issues from the Chinese government.
The situation has grown more complex in recent days. Nvidia has received orders for more than two million H200 chips, according to Reuters. However, Beijing authorities have asked some Chinese technology companies to pause their orders.
The pause comes as Chinese officials evaluate how many domestically produced chips companies should buy alongside Nvidia’s hardware. Reuters reported Tuesday that Nvidia isn’t requesting upfront payment for H200 chips.
KeyBanc analyst John Vinh maintained an Overweight rating on the stock with a $275 price target in a Monday research note. He estimates China’s demand for the H200 at roughly 1.5 million units this year.
“Uncertainty remains when licenses will be approved, creating uncertainty on how many GPUs will be shipped to China,” Vinh wrote.
Vera Rubin Platform Could Drive Recovery
The KeyBanc analyst expects the stock to eventually move higher as investor attention shifts to Nvidia’s next-generation hardware. The Vera Rubin platform is scheduled to launch in the second half of 2026.
“We expect mass production of Vera Rubin at the end of 2Q26 with volume production of VR NVL72 racks set to ramp in 4Q26,” Vinh wrote.
DA Davidson also reiterated its Buy rating on Nvidia following Huang’s CES keynote presentation. The firm highlighted Huang’s announcement that the Vera Rubin platform is now in full production.
The new platform delivers up to 10 times lower token cost while training mixture-of-expert models with four times fewer GPUs. Huang emphasized a platform shift toward physical AI during the presentation.
New Autonomous Driving Models Announced
The CEO announced the Alpamayo family of open source models designed to accelerate autonomous driving development. DA Davidson expressed confidence that Nvidia will maintain its competitive edge over rivals like AMD and Broadcom for the foreseeable future.
In premarket trading Tuesday, Advanced Micro Devices rose 2.5% while Broadcom slipped 0.2%. KeyBanc’s Vinh upgraded his rating on AMD based on strong sales of central processing units for servers.
The H200 chip represents Nvidia’s effort to serve the Chinese market while complying with U.S. export restrictions. The chip is specifically designed for China’s AI sector.
Huang stated last week that he expects no problems from Chinese authorities regarding the H200. Beijing’s request for companies to pause orders came after those comments.
The post Nvidia (NVDA) Stock: Analyst Sees Path to $275 Despite China Headwinds appeared first on Blockonomi.
Source: https://blockonomi.com/nvidia-nvda-stock-analyst-sees-path-to-275-despite-china-headwinds/