TLDR
- NVDA trades at $174.98 with Q2 earnings scheduled for August 27
- Revenue-sharing agreement with U.S. government restores China chip sales access
- B30A processor based on Blackwell architecture targets Chinese AI market
- Wall Street price targets climb to $210-$235 range on growth optimism
- China represents potential $50 billion annual market opportunity
Nvidia stock maintains its position near $175 as the semiconductor giant prepares for quarterly results. The AI chipmaker shows consolidation patterns with key technical levels at $180 resistance and $172 support.
Market volume has decreased as traders await earnings guidance on August 27. The stock sits just 4% below recent record highs despite broader tech sector pressure.
Technical indicators present mixed signals with short-term averages supporting bullish momentum while longer-term measures suggest caution. This divergence creates anticipation for a decisive post-earnings move.
China Sales Resume Under New Framework
Nvidia successfully negotiated chip sales resumption to China through a strategic partnership with the Trump Administration. The deal requires 15% revenue sharing with the U.S. government but unlocks access to the world’s second-largest economy.
The agreement ends uncertainty that had weighed on investor sentiment for months. Nvidia previously faced a complete lockout from Chinese markets, threatening billions in annual revenue.
H20 chip sales to China generated $17 billion during fiscal 2025, comprising 13% of total company revenue. The suspension had created a potential $26 billion annual revenue gap.
CEO Jensen Huang’s lobbying efforts proved successful in securing market access. The revenue-sharing structure preserves profitability while meeting regulatory requirements.
B30A Processor Expands Market Reach
Development of the B30A processor represents Nvidia’s latest innovation for export-compliant markets. The new chip delivers half the computational power of the flagship Blackwell B300 while maintaining advanced architecture features.
Sources familiar with the project confirm the processor targets Chinese customers specifically. The 50% power reduction aligns with President Trump’s stated preferences for reduced-capacity exports.
The B30A leverages Blackwell architecture advances while meeting regulatory constraints. This approach allows Nvidia to serve Chinese AI demand without compromising export compliance.
Huang estimates China’s AI processor market could reach $50 billion annually within several years. The B30A positions Nvidia to capture substantial market share in this expanding segment.
Wall Street analysts have responded positively to the China developments. Susquehanna raised its price target from $180 to $210 following the announcement.
KeyBanc established a $215 target while TD Cowen projects shares reaching $235. These upgrades reflect confidence in Nvidia’s ability to monetize Chinese market access.
Current revenue projections may underestimate China’s contribution. Analysts estimate $200 billion in fiscal 2026 sales, potentially conservative given restored market access.
The company trades at approximately 30 times forward sales estimates. This multiple appears attractive considering the expanded addressable market and technological leadership position.
Earnings results on August 27 will provide clarity on China revenue guidance and B30A timeline. Strong results could propel shares toward $185-$190 in the near term.
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