Nvidia plans to resume shipping H200 AI chips to China, aiming for 5,000-10,000 units before the Lunar New Year. This marks a potential easing of U.S. export restrictions, with a 25% fee under review. While shipment volumes may not impact this quarter, it signals a return to normalcy for Nvidia’s China exposure.

Nvidia, a Santa Clara-based tech giant, dominates the global AI ecosystem with GPUs and AI computing solutions. With a $4.46 trillion market cap, the stock has seen a 52-week range of $86.62-$212.19 and currently trades around $187, outperforming the S&P 500 by over 40% in the past year.

Trading at around 41x forward P/E and 33.7x P/S multiples, Nvidia’s valuation reflects its strong fundamentals: 55.9% profit margins, 99% ROE, and scarcity of AI hardware. This mega-cap stock consistently outpaces earnings growth over valuation multiples, appealing to investors seeking growth.

Nvidia’s latest quarter saw record revenues of $57 billion, a 62% increase YoY. The Data Center segment alone raked in $51.2 billion, a 66% surge from a year ago. Adjusted EPS stood at $1.30, with robust gross margins above 73%, indicating strong demand for Blackwell GPUs.

CEO Jensen Huang highlights a virtuous cycle of AI adoption, emphasizing China’s potential pipeline fill with H200 chips based on last-gen technology. Analysts remain bullish on NVDA, with a consensus target of $256, foreseeing a 37% upside potential. Positive sentiment around U.S. hyperscalers and AI initiatives drive optimism, despite uncertainties around China’s reopening.

Read more at Yahoo Finance: Nvidia Could Start Shipping H200 Chips to China Again in Just a Few Weeks. Should You Buy NVDA Stock First?