NVIDIA Corp. (NVDA) stock price surged by 4% after announcing hopes to resume sales of H20 AI chips to China. The Trump administration previously restricted chip shipments to China, causing revenue losses. Resuming sales could bring in $10-20 billion in revenue for fiscal 2026, potentially boosting EPS by 25-50 cents.

NVIDIA is focusing on innovation with upcoming chipsets like Blackwell Ultra and Vera Rubin. Major clients plan to invest $325 billion in AI infrastructure in 2025. NVIDIA’s shift to reasoning AI models, like DeepSeek R1, offers growth opportunities. Automotive revenue spiked 72% to $567 million in Q1 fiscal 2026.

Despite a Zacks Rank #3 (Hold), NVIDIA shows strong potential with expected revenue and earnings growth rates. The company’s return to sales in China could significantly impact top and bottom lines, leading to a rise in the average target price. NVIDIA’s growth outlook and execution make it a valuable long-term investment opportunity.

Read more at Nasdaq: Is NVIDIA a Buy Amid Expectations of China Sales Resumption?