Wells Fargo Lifts Nvidia Price Target to $220 on China AI Chip Deal
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Nvidia shares have climbed over 48% over the past three months and are up 36% since the start of the year, with the much-anticipated Q2 2026 earnings call expected on August 27.
China Deal and Global Trade Trends Signal Revenue Boost
The move comes after the Financial Times reported that Nvidia and Advanced Micro Devices (AMD) reached an agreement with the U.S. government. The deal will allow both companies to resume selling certain artificial intelligence chips in China in exchange for giving the government 15% of the revenue from those sales. For Nvidia, the chips in focus are its H20 models, while for AMD, the models are MI308 chips.
Rakers said the new arrangement could help Nvidia recover the full $8 billion in quarterly revenue that was at risk from the earlier China restrictions. The analyst expects this recovery to be complete by the company's fiscal fourth quarter in January 2026. He also sees demand from China growing further after that point.
In addition, Rakers pointed to recent trade data that supports a stronger outlook for the sector. U.S. imports of automated data processing machines rose in June, while Taiwanese exports of the same category rose in July. These trends often align with higher demand for servers and related technology used in artificial intelligence. To conclude, Wells Fargo believes the combination of renewed China sales and strong global demand could help push the stock toward its higher target.
Meanwhile, Bernstein's five-star analyst Stacy Rasgon maintained a Buy rating on Nvidia today and set a price target of $185.00.
Is NVDA Stock a Buy?
average NVDA stock price target of $186.24. This implies a 1.94% upside from the current price.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
13 minutes ago
- Business Insider
Mark Cuban says companies should be taxed more for buying back their own shares
In an X post on Tuesday, the billionaire investor said raising the federal tax on the practice would push companies to reinvest in their businesses and hit wealthy shareholders — including himself — the hardest. The "Shark Tank" star called it "a way to charge the biggest public companies more" while shifting incentives toward long-term growth. Stock buybacks, also called share repurchases, happen when a company buys back its stock from investors, often reducing the number of shares in circulation. This can boost earnings per share and, in turn, the stock price, benefiting remaining shareholders. Critics say the practice can prioritize short-term gains over long-term investment. American companies bought back $166 billion in shares in July — the highest July total on record — bringing the year-to-date tally to $926 billion, surpassing the previous year-to-date record set in 2022 by $108 billion, per data from stock market research firm Birinyi Associates. The US has had a 1% tax on stock repurchases on publicly traded corporations since the Inflation Reduction Act, which took effect on January 1, 2023. Cuban said that a higher tax could encourage firms to use the cash to expand or pay dividends to shareholders, which he said would be tax-free for many Americans. "Married households making under 94k pay no taxes on it," Cuban wrote. "If I own it. I pay full taxes." In a follow-up X post, Cuban suggested exempting companies from the higher tax if they distributed repurchased shares to all employees, from interns to the CEO, based on each worker's share of total annual cash earnings. He said this would be a "baby step" toward reducing income inequality and boosting workers' net worth. A market correction could encourage more buybacks Citi predicted in a March note that there would be $1 trillion in buybacks for the year, up 11% from about $900 billion in 2024. The bank said market declines could spur more repurchases, as companies seize the chance to buy their shares at discounted levels. Citi said large firms like Apple, Alphabet, Nvidia, Wells Fargo, and Visa repurchased roughly $190 billion in stock last year alone. Citi's forecast came before a series of market warnings from Wall Street strategists. Analysts at BTIG, Evercore ISI, Stifel, Morgan Stanley, and Wells Fargo have all flagged the potential for a correction in the S&P 500 in the coming months. They cited stretched valuations, seasonal weakness in August and September, and uncertainty over tariffs' economic impact.
Newsweek
13 minutes ago
- Newsweek
China Rival Eyes More US Weapons: Full List
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Taiwan is reportedly planning to place additional weapons orders—including air defense systems and rocket launchers—with its security partner, the United States, as the self-ruled democratic island faces increasing military pressure from its powerful neighbor, China. Newsweek has emailed the Taiwanese Defense Ministry for comment. China's Foreign Ministry did not immediately respond to a request for comment. Why It Matters The Chinese Communist Party has long claimed sovereignty over Taiwan, despite never having governed the island. Chinese leader Xi Jinping has vowed to use force to achieve unification if necessary, and his armed forces have been preparing for a potential invasion of Taiwan. While the U.S. no longer maintains diplomatic relations with Taiwan, it is required by the Taiwan Relations Act to provide the island with defensive arms and to maintain its own capability to resist any attempt to resolve cross-strait differences by non-peaceful means. Facing China's military buildup, the U.S. has stated that Taiwan should increase its defense spending to closer to 10 percent of its Gross Domestic Product, even though President Donald Trump once refused to answer whether he was committed to defending the island. What To Know Taiwan plans to acquire an additional 28 American rocket launchers—known as the High Mobility Artillery Rocket System (HIMARS)—and nine National Advanced Surface-to-Air Missile Systems (NASAMS), the Taiwanese newspaper Taipei Times reported on Sunday. The Taiwanese military conducts its first High Mobility Artillery Rocket System (HIMARS) live-fire test launch at Jiupeng base in Pingtung, Taiwan, on May 12, 2025. The Taiwanese military conducts its first High Mobility Artillery Rocket System (HIMARS) live-fire test launch at Jiupeng base in Pingtung, Taiwan, on May 12, 2025. I-HWA CHENG/AFP via Getty Images According to the report, which cited military sources, Taiwan previously agreed to purchase 29 HIMARS launchers capable of firing rockets or missiles, with the first 11 launchers delivered in 2024. Taiwan's HIMARS launchers were used for the first time in a live-fire exercise on the island in May 2025. The U.S. previously approved the sale of three NASAMS to Taiwan, which are expected to be deployed near the island's capital, Taipei, with the first to be delivered by the end of the year. The additional systems will enhance the defense of central and southern Taiwan. HIMARS is a long-range, mobile, precision-fire launcher capable of firing four different variants of munitions. NASAMS is a short-to-medium-range, land-based air defense system designed to protect bases, ports, populated areas and other high-value assets. Ukraine—which like Taiwan is faced by a hostile neighbor with much greater military resources—has used HIMARS and NASAMS in its war against Russia. The Norwegian Army fires a National Advanced Surface-to-Air Missile System (NASAMS) from the Andøya Space Range in Andøya, Norway, against a simulated threat on May 10, 2023. The Norwegian Army fires a National Advanced Surface-to-Air Missile System (NASAMS) from the Andøya Space Range in Andøya, Norway, against a simulated threat on May 10, 2023. Royal Norwegian Navy Meanwhile, another Taiwanese newspaper, the Liberty Times, reported on Monday that Taipei's military plans to purchase additional Javelin and TOW (Tube-launched, Optically Tracked, Wire-guided) 2B missiles to strengthen its anti-armor capabilities. Citing people familiar with the matter, the report said the total number of new missiles could exceed 2,000, based on their use by Ukrainian forces—which acquired them from the U.S.—and the estimated ammunition Taiwan would need in the event of a conflict. According to manufacturer Lockheed Martin, the Javelin is a shoulder-fired weapon capable of striking armored targets at their weakest points, while the TOW is claimed to be effective against "the most modern and heavily protected" armored vehicles and fortifications. What People Are Saying Senior Colonel Zhang Xiaogang, spokesperson for China's Defense Ministry, said in April: "I want to underline that U.S. arms sales to Taiwan cannot change the strength contrast between the two sides of the Taiwan Strait much less impede the historical and inevitable trend of China's reunification." Tammy Bruce, spokesperson for the U.S. State Department, said in April: "In the face of China's intimidation tactics and destabilizing behavior, the United States' enduring commitment to our allies and partners, including Taiwan, continues. The United States supports peace and stability across the Taiwan Strait and opposes unilateral changes to the status quo, including through force or coercion." What Happens Next It remains to be seen whether the Trump administration will approve any weapons sales to Taiwan in the coming months, while China continues to exert military pressure on the island.
Wall Street Journal
13 minutes ago
- Wall Street Journal
U.S. Could Do More Nvidia-Style Deals Taking a Cut of Revenue, Bessent Says
Treasury Secretary Scott Bessent said Nvidia's agreement to share 15% of revenue from sales of artificial-intelligence chips to China with the U.S. government could be a template for other industries. 'I think we could see it in other industries over time. I think right now this is unique, but now that we have the model, and the beta test, why not expand it?' he said in an interview with Bloomberg TV Wednesday.
