Nvidia Stock Today: What Comes After the China Chip Boost

Nvidia CEO Jensen Huang is visiting China this week. (AFP via Getty Images)

Nvidia stock wasn’t doing all that much Wednesday after jumping in the previous session on news it can sell advanced artificial-intelligence chips in China again.

Shares of the semiconductor maker, which is the most valuable U.S. company, were up 0.3% at $171.20 in early trading after popping 4% yesterday. President Donald Trump earlier this week lifted export restrictions on Nvidia’s H20 artificial-intelligence chip, allowing the company to resume sales in one of its biggest markets.

Treasury Secretary Howard Lutnick revealed some of the thinking behind easing the export curbs. First, the change came after China and the U.S. reached a deal on magnets, he said in an interview with CNBC. Second, he pointed out that the H20 model, which Nvidia specifically developed after former President Joe Biden prevented the export of the most advanced semiconductors to China, were far from the fastest processors out there.

“We don’t sell them our best stuff, not our second best stuff, not even our third best,” Lutnick said. “Fourth best is where we have come out that we’re cool.”

Nevertheless, the lighter restrictions mean Nvidia will have more room to grow in China. Nvidia CEO Jensen Huang is visiting the country this week. On Wednesday, he praised China’s lower-cost AI models for helping to advance the technology. Earlier this year, Huang said chip-export restrictions would mean the company would miss out on some $8 billion of sales in the current financial quarter.

Separately, stock in Dutch chip company ASML was falling sharply Wednesday after the company cut its outlook, blaming trade wars and tariffs for lower demand.

Nvidia shares climbed to a record high yesterday, closing with a $4.2 trillion market value, helping the technology-heavy Nasdaq index to also close at a record. That puts Nvidia more than $1 trillion ahead of iPhone maker Apple at $3.1 trillion, which once held the crown as the most valuable company. Microsoft, another megacap software maker, is now in second place at $3.8 trillion. Amazon comes in fourth at $2.4 trillion, Google-parent Alphabet at $2.2 trillion, and Facebook-owner Meta Platforms trailing behind at $1.8 trillion.

Analysts at Jefferies led by Blayne Curtis raised their price target on Nvidia stock to $200 on Wednesday from $195. Nvidia is the team’s top pick.

Write to Brian Swint at brian.swint@barrons.com