Veteran fund manager makes bold move on Nvidia price target
Relax, people: Jensen Huang says there's nothing to worry about.
The Nvidia () CEO was looking to assure the U.S. government that it did not need to be concerned about the AI-chip superpower's technology being used by the Chinese military.
💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰
"We don't have to worry about that because the Chinese military — no different to the American military — will not seek to build on top of each other's technology," Huang said in an interview with CNN. "They simply can't rely on it. It could, of course, be limited at any time."
The U.S. government, under both the Biden and Trump administrations, has implemented and progressively tightened restrictions on the sale of advanced AI chips to clients in China, citing national security concerns.
"If you just think about the number of supercomputers that are in China, built by amazing Chinese engineers that are already in operation, they don't need Nvidia's chips or American tech stacks in order to build their military," he said.
He said that export controls had been counterproductive to the ultimate goal of U.S. tech leadership, and that half the world's AI researchers are in China.
'We want the American tech stack to be the global standard. ... [In] order for us to do that, we have to be in search of all the AI developers in the world,' he said.
More Nvidia:
Analysts revamp forecast for Nvidia-backed AI stock
Nvidia stock could surge after surprising Taiwan Semi news
Nvidia CEO sends blunt 7-word message on quantum computing
Huang, who recently met with President Donald Trump and government and industry officials in Beijing, said Nvidia was filing applications to sell the Nvidia H20 GPU again.
The H20, a less powerful version of Nvidia's Hopper architecture H100 GPU, was created to meet U.S. export-control regulations while still enabling Nvidia to maintain a presence in the Chinese market.
This news was music to the ears of a lot of people in the investment community, including TheStreet Pro's Chris Versace.
"This should not only remove an overhanging question as to the future of Nvidia's China business but restore revenue that was written off as lost due to government restrictions," the lead portfolio manager of TheStreet Pro portfolio said in his July 15 column.
China generated $17 billion in revenue for Nvidia in 2024, roughly 13% of the company's total revenue, Versace said.
In response to the news, he lifted his Nvidia price target to $200 from $185 and reiterating his One rating.
"We are also thinking this is a positive step in smoothing U.S.-China trade conversations as the two countries work on a larger trade deal," he said.
President Trump is slated to announce $70 billion in artificial intelligence and energy investments, Versace said, which lends additional support for the price target increase.
In a related development, Versace said CoreWeave () , a key Nvidia customer, will commit as much as $6 billion for a Lancaster, Pa., 100-megawatt data center that could be expanded to 300 MW.
'We suspect there will be similar announcements from other companies as part of Trump's larger announcement, much the way we saw with the Stargate announcement in January,' he said, referring to the joint venture that plans to invest up to $500 billion in AI infrastructure.Versace said these announcements should affirm expectations for AI and data center demand in the coming quarters.
Connecting the dots, Versace said that would be "a positive demand driver for not only Nvidia and Marvell () shares, but also Eaton () , United Rentals () , and others."
Several investment firms issued research reports on Nvidia, including Bank of America Securities, which raised its price target to $220 from $180 and affirmed a buy rating on the shares.
The Department of Commerce allowing Nvidia and AMD () to resume artificial intelligence chip sales to China is an incremental positive for both companies, the firm said, according to The Fly.
B of A said the move expanded the addressable opportunity in AI for U.S. chipmakers by as much as 10% and improves the U.S.'s ability to dominate the global tech stack.
Piper Sandler maintained an overweight rating on Nvidia after the company said it expects to be granted licenses to resume H20 chip sales to China.
During the April quarter, the company posted $4.6 billion in sales for H20 and left an additional $2.5 billion on the table due to the ban, the firm said.
Piper said the estimated impact from the ban in the July quarter was around $8 billion in sales. The firm said that it suspected strong demand for these chips would have continued had the ban not been in place.Veteran fund manager makes bold move on Nvidia price target first appeared on TheStreet on Jul 16, 2025
This story was originally reported by TheStreet on Jul 16, 2025, where it first appeared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
a minute ago
- Business Insider
Chinese firm seals $100 million grain deal in Angola, second agriculture investment this week
China's Sinohydro Group will invest more than $100 million in Angola to develop new sources of grain. Sinohydro Group is set to invest over $100 million in Angola for grain development. Angola granted a tax-free 25-year land concession of 30,000 hectares to Sinohydro. The project aims to improve agricultural infrastructure using existing equipment. China's Sinohydro Group will invest more than $100 million in Angola to develop new sources of grain, marking the second major agricultural agreement between the two countries in less than a week. Under a deal signed late Thursday in Luanda, Angola granted Sinohydro a 25-year, tax-free land concession covering 30,000 hectares across six eastern provinces, Bloomberg reported. The Chinese engineering and infrastructure giant will utilise equipment already available in the country to expedite the rollout of logistics and agricultural support infrastructure. 'Angola has vast land but lacks basic infrastructure,' said Li Xunfeng, Sinohydro's Managing Director, at the signing ceremony. 'This is the right time to invest; the environment here is better than in many African countries.' The announcement follows a $250 million investment revealed earlier this week by a subsidiary of Chinese state-owned conglomerate Citic Ltd., which plans to develop large-scale soybean and corn farms in Angola. Sinohydro, which has been operating in Angola for over two decades, stated that the new project aligns with the Angolan government's initiative to revive large-scale farming and reduce its reliance on food imports. 60% of output bound for China According to Agriculture Minister Isaac dos Anjos, about 60% of the produce, mainly soybeans, will be exported to China, while the remainder will support domestic consumption. The concession will be divided into plots ranging from 500 to 1,000 hectares to accommodate both commercial farms and community-led initiatives. Sinohydro also plans to establish a seed research and testing centre to improve yields and attract more Chinese agribusinesses to the country.
Newsweek
a minute ago
- Newsweek
Social Security COLA for 2026 and Beyond: What Seniors Want
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. American seniors are frustrated with how Social Security adjusts for inflation, and they want change. A new report from The Senior Citizens League (TSCL) shows a clear demand among retirees to improve the way the annual cost-of-living adjustment (COLA) is calculated. According to the group's latest survey of 1,92 individuals over the age of 62, 34 percent of respondents identified updating the COLA formula as their top policy priority for enhancing Social Security benefits. And when presented with specific policy options to raise future COLAs, seniors overwhelmingly supported a shift to a more targeted inflation measure. Currently, the Social Security Administration (SSA) calculates COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks inflation using the spending habits of younger, urban workers, not retirees. Since 1975, COLAs have been applied annually based on CPI-W data gathered during the third quarter of the year (July through September), with the goal of ensuring benefits rise in line with everyday costs, such as housing, food, and medical care. This year, benefits rose by 2.5 percent. The TSCL, based on current CPI-W readings, expects the 2026 COLA to increase slightly to 2.6 percent. However, regardless of the boost, for many retirees, that formula no longer works. According to the TSCL survey, 68 percent of seniors support replacing the current CPI-W model with the CPI-E, or Consumer Price Index for the Elderly. Developed by the U.S. Bureau of Labor Statistics, the CPI-E is an index that tracks the spending habits of Americans aged 62 and older, focusing on the types of goods and services seniors typically use, such as health care, housing, and prescription drugs. "CPI-E is designed to better reflect the spending habits of people aged 62 and older," Colin Ruggiero, co-founder at told Newsweek. "It gives more weight to health care and housing costs which are two of the fastest-growing expenses for seniors. Switching to CPI-E would make COLAs more relevant and responsive to the real financial pressures seniors face." Chris Motola, a financial analyst at told Newsweek: "The main advantage of CPI-E would be to more heavily weight health care and housing costs in COLA calculations, both of which tend to disproportionately eat into seniors' budgets." Another popular idea is making up for what's already been lost. The TSCL survey found that 57 percent of respondents support a one-time "catch-up" COLA payment to compensate for years when benefits failed to keep pace with actual living costs. Composite image created by Newsweek. Composite image created by Newsweek. Photo-illustration by Newsweek/Getty/Canva "A catch-up COLA would be a recognition that past adjustments haven't kept pace with reality," Ruggiero said. "While it's feasible, it would require congressional approval and carry a hefty budgetary cost. Politically, it could gain traction as a way to restore fairness, especially if framed as a correction rather than a new ongoing expense." Still, the limits of these proposals are clear. While COLA reforms could help stabilize seniors' purchasing power, experts caution that they won't fix everything. "Adjusting the COLA is a great start, but it's not the cure-all," said Ruggiero. "We also need broader reforms to strengthen the entire retirement system, including benefit adequacy, solvency, and support for low-income seniors." Motola agreed: "It would go a long way, but again, a major problem is that Social Security isn't really meant to carry the burden alone. We've made it very difficult for people to save money for retirement, and the loss of pensions has placed enormous stress on the system."
Yahoo
20 minutes ago
- Yahoo
This Tech Giant Is the Best Artificial Intelligence (AI) Chip Stock to Buy Right Now
Key Points TSMC delivered terrific results on July 17 and raised its full-year guidance. The company's earnings growth is expected to accelerate going forward. TSMC's valuation and healthy growth make the stock an attractive buy right now. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Taiwan Semiconductor Manufacturing (NYSE: TSM) has been at the center of the artificial intelligence (AI) chip boom by virtue of its status as the world's largest semiconductor foundry. The company, commonly known as TSMC, reported second quarter results on July 17, only to remind the market why it is one of the best ways to capitalize on the growth in AI semiconductor demand. All the major chip companies, such as Broadcom, Marvell, Nvidia, AMD, and Intel, have been using TSMC's fabrication plants to manufacture their AI chips. Moreover, the chips that go into AI-enabled smartphones are manufactured at TSMC's facilities since it counts the likes of Qualcomm and Apple as customers too. This world-class client base and the secular growth of the AI chip market allowed TSMC to deliver outstanding Q2 results and boost its full-year guidance as well. Take a closer look at the latest numbers, and you'll see why it's not too late for investors to buy this hot AI stock. TSMC's AI-fueled growth is here to stay TSMC reported an impressive 44% year-over-year increase in its Q2 revenue to $30.1 billion, exceeding the high end of its guidance range. Meanwhile, the company's adjusted earnings per share shot up at a much faster pace of 61%, a testament to its solid pricing power. TSMC controls 68% of the global semiconductor foundry market, well ahead of its closest rival, Samsung, which has a market share of just under 8%. The company has managed to build such a huge gap over the competition thanks to the technological lead of its process nodes. As a result, TSMC has the ability to raise the prices of its services, and that explains why its gross margin increased by more than five percentage points last quarter from the prior-year period. Importantly, TSMC is now anticipating its full-year revenue will grow 30% in 2025, up from its earlier estimate of mid-20% growth. But TSMC could end the year with an even bigger top-line jump as it has already achieved 40% year-over-year growth in the first half of 2025, and it is expecting a 38% spike in revenue in the current quarter (at the midpoint of guidance). What's worth noting here is that TSMC says its guidance takes into account the potential impact of tariffs on its business. Even then, the company has raised its full-year outlook, and it won't be surprising to see it end 2025 with a bigger-than-expected jump in revenue and earnings. In fact, TSMC's red-hot growth seems sustainable for a long time to come, considering the secular growth opportunity presented by AI. The various AI-focused end-markets that TSMC serves are on track to boom remarkably in the next five years. For instance, the investment in AI chips and computing hardware could exceed a whopping $3 trillion by 2030, according to the consulting firm McKinsey. Not surprisingly, analysts are also increasing their estimates for the company's earnings through 2027. The stock is built for more upside TSMC stock has jumped an impressive 59% in the past three months. Even then, it is trading at 28 times trailing earnings as compared to the tech-laden Nasdaq 100 index's average earnings multiple of more than 32. The forward earnings multiple of 24 is even more attractive and is yet another signal of the company's continued bottom-line growth. Investors looking to add an AI stock to their portfolios should consider buying TSMC as a top pick. It has room to run higher and is trading at a discount to the broader technology sector, despite quarter after quarter of outstanding execution. Should you buy stock in Taiwan Semiconductor Manufacturing right now? Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and Marvell Technology and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. This Tech Giant Is the Best Artificial Intelligence (AI) Chip Stock to Buy Right Now was originally published by The Motley Fool Sign in to access your portfolio
