Nvidia’s stock fell after suppliers paused production of key components for its H200 chips, following Beijing’s ban on the chips entering China. Despite this setback, Nvidia stock is up 110% from its 52-week low. The halt in production raises inventory and supply chain risks, impacting revenue growth potential.

Beijing’s ban on H200 imports and the production pause have caused uncertainty for Nvidia, which was expecting over 1 million orders from China. Oppenheimer analysts recommend still owning Nvidia shares due to its strong AI capabilities and performance. The company is expected to earn $1.45 per share this quarter, up 71% year-over-year.

Despite the recent challenges, Nvidia remains above its 200-day moving average, indicating its overall uptrend is intact. Wall Street analysts are bullish on Nvidia, with a consensus rating of “Strong Buy” and a target price of $256, suggesting potential upside of nearly 43%. The company is seen as a leader in artificial intelligence accelerators.

Nvidia’s vulnerability to geopolitical and regulatory risks is highlighted by recent events impacting its production and revenue growth. However, analysts remain optimistic about the company’s long-term prospects, citing its strong AI capabilities and performance. The stock is expected to continue its upward trajectory, driven by its leading position in the AI market.

Read more at Yahoo Finance: H200 Component Production Is Halted. What That Means for Nvidia, and Should You Buy the NVDA Stock Dip Here?