Nvidia May Gain Unexpected Boost from China as Investors Focus on Upcoming Earnings

The Barron's reported that Nvidia (NVDA-US) shares rose slightly in early trading on Wednesday (19th) but ultimately closed down 0.9%. According to the report, the chip manufacturer has received approval to ship more chips to Chinese customers, and Wall Street is awaiting its upcoming earnings release.

Nvidia's stock had risen 0.1% in early trading, following a 2.3% drop the previous day due to a broader decline in semiconductor stocks.

Investor attention is primarily focused on Nvidia's earnings report scheduled for August 26. Citigroup analyst Atif Malik reiterated his $300 price target and 'Buy' rating in a pre-earnings report, suggesting that Nvidia's revenue could exceed market expectations.

In his research note, Malik stated, 'We believe Nvidia has secured HBM (High Bandwidth Memory) supply for 2026/27, which should help further raise market expectations. Beyond memory, we believe Nvidia is focusing on the next resource bottleneck—LPS (Land, Power, and Data Center Shells)—to assist in scaling up AI factories.'

A significant revenue contribution from China could provide an unexpected positive surprise. The Financial Times, citing sources, reported that Chinese authorities have recently allowed Chinese firms ByteDance and Tencent to each acquire approximately 10,000 Nvidia H200 processors, with other Chinese companies potentially receiving similar approvals.

KeyBanc analyst John Vinh noted that Chinese companies are willing to purchase around 1.5 million H200 chips, which would represent approximately $30 billion in revenue. Nvidia has agreed to pay 25% of any related sales revenue to the U.S. government.