Wall Street Still Bullish on Nvidia as H20 GPU Sales Resume in China Amid Regulatory Tightrope

Nvidia (NASDAQ: NVDA) just scored a win in its ongoing balancing act between U.S. regulation and Chinese demand. The tech giant has officially received clearance to resume shipments of its H20 GPUs to China, a major development that could have meaningful implications for both its bottom line and global AI ambitions.

This comes as Wall Street remains optimistic about the stock. NVDA currently holds a consensus “Buy” rating, with an average price target of $175, suggesting moderate upside. But bullish sentiment runs deeper—some analysts have set a Street-high price target of $250, implying a potential 52% upside from current levels.

Strategic Recovery: Back to Business in China

The green light to restart H20 shipments follows a temporary suspension due to U.S. export restrictions aimed at controlling the flow of advanced semiconductor tech to China. Nvidia responded quickly by designing a regulation-compliant version of the H20, tailored for industrial AI applications like digital twin technology—a sector booming across Chinese enterprises.

Resuming shipments not only reopens a key revenue channel but also helps Nvidia recoup from a painful inventory write-off caused by canceled orders earlier this year. The company’s swift adaptation reflects its ability to navigate geopolitical headwinds without sacrificing innovation.

CEO Jensen Huang: Diplomatic and Strategic

Jensen Huang, Nvidia’s outspoken CEO, has taken an unusually hands-on approach to international diplomacy. After visiting Washington D.C. for discussions with President Trump and lawmakers, Huang is now in Beijing for his second visit this year, engaging Chinese officials to reinforce Nvidia’s commitment to collaboration—particularly in AI research and open-source development.

During these meetings, Huang reportedly downplayed fears that U.S.-based chip tech could be exploited by China’s military, stating that China doesn’t rely on U.S. hardware for defense applications and already possesses significant computing capabilities. He emphasized that Washington can revoke access at any time, but insisted Nvidia’s presence in China doesn’t pose a strategic risk.

Bigger Picture: A Resilient AI Powerhouse

While the H20 is just one piece of Nvidia’s expansive AI-driven portfolio, its ability to regain footing in a market as sensitive and valuable as China speaks volumes. From GPUs powering autonomous vehicles and data centers to partnerships in robotics and cloud services, Nvidia is positioned at the heart of AI infrastructure worldwide.

Still, not everyone is convinced it’s the best play in the space. Some analysts are pointing toward lesser-known AI stocks with higher risk—but potentially greater reward—as alternatives to NVDA. One report even suggests an AI pick with a projected 10,000% upside (though let’s be honest, that's more of a moonshot than a forecast).

Final Take

Nvidia’s latest maneuver is less about just selling chips and more about showcasing how to thrive in a politically fractured global tech landscape. With Wall Street still backing the stock, Huang actively working the diplomacy circuit, and the Chinese market reopened—NVDA remains one of the most important and resilient names in AI.

While volatility isn’t off the table, the fundamentals and the vision are as strong as ever.