Nvidia (NVDA 3.17%) stock is jumping in Monday's trading. The artificial intelligence (AI) leader's share price was up 4.1% as of 1:30 p.m. ET, according to data from S&P Global Market Intelligence.
NASDAQ: NVDA
Key Data Points
Nvidia stock is gaining ground today thanks to news that it's developing a new, high-performance AI processor for the Chinese market. The stock is also getting a boost thanks to bullish coverage from analysts.
Nvidia's strategy in China has huge implications
Reuters published a report this morning suggesting that Nvidia is designing a new offshoot variant of its most powerful graphics processing unit (GPU) for the Chinese market. Shipments of the B20 chip and related processor technology are expected to begin in China in the second quarter of 2025.
Concerns about Nvidia's ability to sell advanced processors in the country due to restrictions enacted by the U.S. and other allies have been dragging on the company's stock recently. In addition to potentially creating a sizable short-term revenue stream, the move also signals that Nvidia does not appear to pivoting from China -- one of the largest markets for its hardware and services.
Wall Street bulls are weighing in on Nvidia
In a note published this morning, Piper Sandler analyst Harsh Kumar raised his one-year price target on Nvidia stock from $120 per share to $140 per share. The firm's lead analyst on the company cited favorable business trends and the launch of the AI leader's new Blackwell chip platform in October as catalysts for the increase. The first Blackwell processors are expected to deliver major leaps in performance over Nvidia's current high-end chips, which are already best-in-class.
Loop Capital also published a bullish note on Nvidia stock, reiterating its buy rating and raising its one-year price target from $120 per share to $175 per share. Analyst Ananda Baruah thinks the company could be on track to deliver revenue from its data center segment that far exceeds Wall Street's expectations. Baruah thinks that data center revenue for 2025 could come in between $215 billion and $240 billion, while the average analyst estimate calls for sales of $145 billion. The analyst also thinks that sales for the compute segment could hit between $200 billion and $225 billion, ahead of Wall Street's target for sales of $132 billion.
