Wells Fargo has increased its price target for Nvidia (NVDA) to $220 from $185, maintaining its Overweight rating on the stock. The new target, issued by analyst Aaron Rakers ahead of Nvidia’s upcoming second-quarter earnings report, suggests a potential upside of approximately 20% from Friday’s closing price. The call follows a period of strong performance for the chipmaker, with its stock surging 48% in the past three months and 36% year-to-date.
The bank’s upgraded forecast is primarily based on a Financial Times report that Nvidia and AMD have secured a deal with the U.S. government to resume selling certain AI chips to China. The agreement reportedly requires the companies to remit 15% of the revenue from those sales. For Nvidia, the deal covers its H20 models, while for AMD, it includes the MI308 chips. Rakers estimates this could enable Nvidia to recover the full $8 billion in quarterly revenue previously at risk from trade restrictions, projecting a complete rebound by January 2026 and subsequent growth.
Further bolstering this outlook, Rakers cited trade data showing a rise in U.S. imports and Taiwanese exports of automated data processing machines, a key indicator of growing AI server demand. Wells Fargo believes the combination of restored China sales and strong global technology trends will drive Nvidia’s shares toward the new target.
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