Nvidia will jump 20% after report of China export license agreement, Wells Fargo says
A couple of catalysts could propel shares of Nvidia higher in the coming months, according to Wells Fargo. As investors gear up for the artificial intelligence’s earnings after the bell Aug. 27, the firm increased its price target to $220 from $185 and reiterated an overweight rating on the stock. The firm’s updated target implies 20.4% upside potential from Friday’s close. This comes after The Financial Times reported that Nvidia and Advanced Micro Devices agreed to give the federal government a 15% share of their revenue from selling certain chips in China — namely Nvidia’s H20 chips and AMD’s MI308 chips. The agreement allows the two companies to receive export licenses to sell those chips. “We would assume NVDA can recapture the full $8B/qtr revenue impact the H20 China ban was expected to have on the F2Q26 (July) qtr by F4Q26 (Jan),” analyst Aaron Rakers wrote in a note on Monday. “We would expect China demand to grow from the $8B/qtr level going forward.” Along with the report of approved licenses to resume H20 chip sales in China, Rakers pointed to strength in U.S. imports of automated data processing (ADP) machines in June and Taiwanese exports of ADP machines in July “We see our analysis of highly correlated macro data points coupled w/ strong rptd + guided hyperscale capex trends as supporting solid upside,” the analyst wrote. “We also appreciate that there has been increasing upside bogey sentiment into upcoming (8/27) F2Q26 print.” NVDA 3M mountain NVDA, 3-month Shares of Nvidia were nearly 1% lower in the premarket Monday. Overall, the stock has had a solid year, outperforming the broader market with a 56% gain in the last three months and a 36% rise year to date.
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