Nvidia has seen record earnings due to high demand for its AI chips, with the stock climbing over 200% in the past two years. However, exclusion from the Chinese market has hindered its full potential, resulting in a billion-dollar charge for unsold chips. The recent approval for sales to China could be a game-changer for Nvidia in 2026.

The U.S. export controls on chips to China have impacted Nvidia, leading to the exclusion of U.S. chip designers from the market. Despite this, Nvidia’s revenue soared 62% in the latest quarter, driven by strong demand for its Blackwell platform and maintaining gross margin above 70%. A recent move by President Trump could pave the way for Nvidia’s return to the Chinese market.

Nvidia aims to ship its H200 chips to China soon, as it anticipates orders for two million units in 2026. While this presents a significant opportunity, potential risks remain, such as delays in gaining approval from China and managing production for both Chinese and global markets. However, the positive response from China and Nvidia’s track record suggest a promising outlook for the company.

Investors may see Nvidia’s potential return to the Chinese market in 2026 as a positive development, but the company’s overall strength in the global AI market is the main reason to consider buying the stock. With a focus on innovation, financial stability, and strong demand from AI customers, Nvidia remains a solid investment option.

The Motley Fool’s Stock Advisor team has identified the top 10 stocks for investors to buy now, but Nvidia was not on the list. However, past recommendations for companies like Netflix and Nvidia have seen substantial returns. With a total average return of 966%, Stock Advisor offers valuable insights for individual investors.

Read more at Yahoo Finance: Nvidia Just Made a Major Move for 2026. Time to Buy?