NVIDIA Corporation (NASDAQ:NVDA) is closely watched by analysts for AI potential. Wolfe Research reaffirmed a $250.00 price target, noting minimal impact from new tariffs. The White House imposed a 25% tariff on semiconductors, affecting Nvidia’s H200 shipments to China. This tariff acts as a pre-agreed payment mechanism for export permissions.

Nvidia had previously indicated potential $2–5B/qtr in China shipments with permission. While the US has allowed shipments, China has not granted permission yet. This arrangement could also apply to AMD if pursued. However, AMD’s focus is on other opportunities due to capacity constraints.

NVIDIA specializes in AI solutions for various sectors. While an attractive investment, some AI stocks offer better potential with less risk. An undervalued AI stock could benefit from tariffs and onshoring trends. For more insights, check out the best short-term AI stock report.

This news highlights the ongoing developments in the AI sector, with companies like NVIDIA and AMD navigating trade restrictions and opportunities in the Chinese market. Investors are advised to consider the implications of tariffs and global trade dynamics on AI stocks.

Read more at Yahoo Finance: Nvidia (NVDA) Tariff Impact Seen as Limited, Wolfe Research Says