Nvidia (NVDA) stock slipped but remained above a key level on Monday.
The artificial intelligence chip company may begin shipping its H200 China chip in mid-February, using existing stock, Reuters reported recently. Nvidia also plans to resume H200 production, with fresh orders expected in the second quarter of 2026, the report said. Is Nvidia stock a buy or sell now?
A lot is riding on the annual CES tech trade show which kicks off next Monday in Las Vegas. Founder and Chief Executive Jensen Huang will address topics ranging from AI robotics to simulation, content creation and gaming.
Meanwhile, the path to China chip sales cleared after President Donald Trump recently said Nvidia could sell its H200 chips to "approved companies" in China in exchange for a 25% cut of the sales. The arrangement will require regulatory approval because the U.S. Constitution prohibits export taxes.
Fears of an AI bubble slammed tech leaders recently but those may be exaggerated. There's no AI bubble in the market yet as demand is still running ahead of supply, Jed Ellerbroek, portfolio manager at Argent Capital Management, told MarketWatch. Meanwhile, he's watching for a step up in capabilities in new AI models, including the next version of OpenAI's GPT large language model.
Nvidia this year made Wall Street history by becoming the first company to reach $5 trillion in market capitalization, but it has since backed off that valuation.
The chip designer's fourth-quarter results are scheduled for Feb. 25.
Nvidia Stock: Third-Quarter Results
In November, Nvidia surpassed third-quarter expectations. Earnings of $1.30 per share on sales of $57 billion were ahead of the consensus estimates of $1.26 per share on $55 billion in revenue. Current-quarter sales guidance of $65 billion also blew past views of $62.17 billion.
On its earnings call, Nvidia Chief Executive Jensen Huang said he expected "extraordinary returns" from Nvidia's investments in ChatGPT creator OpenAI and AI startup Anthropic, known for its Claude lineup of large language models.
Analysts remain bullish on Nvidia stock, including Wedbush Securities' Daniel Ives, who maintained his buy rating with a 210 price target.
According to FactSet, the average price target went up to 250 from 234 after its earnings report, Barron's said.
Nvidia Stock: Chief Huang Sees Strong Demand
Huang has been saying he's seeing solid demand for its products. Earlier this month, he said demand for its Blackwell chip was "very strong," Reuters reported in November.
Nvidia's CEO asked Taiwan Semiconductor (TSM) to produce more wafers for Blackwell chips, according to a Bloomberg report. Other reports noted that demand for Nvidia's next-gen Rubin remains solid, and that Nvidia may be shoring up wafers for Rubin as well.
Meanwhile, Nvidia's Hopper chip sales remained limited in the third quarter, with zero sales in China.
Magnificent Seven: Massive Spending Plans
Earlier, Amazon (AMZN) in October said its capex would reach $125 billion this year and increase in 2026.
Amazon has "a very deep relationship with Nvidia," CEO Andy Jassy in its earnings call, according to a transcript. "We have for a very long time. We will for as long as I can foresee the future," he said.
Jassy added: "We buy a lot of Nvidia."
Meta projected "notably larger" capital expenditures in 2026, and Microsoft (MSFT) forecast higher capex growth in fiscal 2026 vs. a year ago. Microsoft exceeded its quarterly AI infrastructure spending targets amid strong demand for its services.
https://www.investors.com/research/nvidia-nvda-stock-ai-3/
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