Nvidia (NVDA) stock has been stagnant around $180 due to growth concerns, chip shortages, and loss of Chinese market access. Recent approval for chip sales in China could boost demand and revenue. Investors await potential upward momentum for NVDA stock to break free from its range-bound trading and target new highs.

Nvidia faces challenges from U.S.-China trade tensions affecting its AI chip sales in China. NVDA stock is up less than 1% this year, trading at a P/E ratio of 48. Forward P/E suggests strong earnings growth potential. The stock is fairly valued with projected 51% earnings growth, but competition risks exist.

Chinese regulators previously hindered Nvidia chip sales in China, impacting revenue growth. Now, major tech firms can prepare orders for Nvidia’s chips, potentially unlocking a massive order pipeline. Analysts foresee billions in deferred revenue and high-end market share recapture, despite competition in the AI sector.

Analysts maintain a bullish outlook on NVDA stock, with a consensus “Strong Buy” rating from 50 analysts. Improved AI demand visibility and revived China access have boosted sentiment. The mean price target is $254.81, indicating a 36% potential upside. Analysts expect continued growth and performance in the coming months.

Read more at Yahoo Finance: Nvidia Just Got a Green Light in China. Is It Ready to Roar?