TheStreet Pro’s Chris Versace explains how Nvidia can continue its surge.
Transcript:
Caroline Woods: NVIDIA says it plans to resume its H20 AI chips shipments to China. The stock reacting positively. How big of a deal is this?
Chris Versace: Well, I think, you know, when we look back earlier in the year, the company was writing down expected revenue because of some restrictions that were put on them. And I think Wall Street largely did the same, right? We saw earnings expectations come down. We saw revenue expectations coming down. So this is a pretty big reversal. How big of a reversal? Well 2020 for China was about 34%, sorry 13% of the company’s revenue stream. Call it around $17 billion. So we’re going to see multiple billions of dollars coming back in. We saw that opportunity at TheStreet Pro portfolio. And that’s why we raised our price target to $200 from $185, really in response to that.
Caroline Woods: So $200 a share that implies a little less than 20% upside from where it’s currently trading around 170. What gets it to $200?
Chris Versace: Well, I think, you know, this is certainly one announcement, but I also see multiple announcements coming that really support that move from $185 to $200. So what are some of those? Obviously, we’re going to see the rollout of the President Trump’s Stargate as that continues to build throughout the year. But we’re also seeing other companies just talk about adding additional AI and data center capacity. Bread and butter business for chip demand for NVIDIA, whether it’s Meta and what they’re doing in Louisiana, whether it’s CoreWeave and what they’re announcing in Pennsylvania, as well as international demand as well. You put it all together and I think as we go through the earnings season, we’re going to hear aggregate big tech and hyperscaler capital spending move higher back half of this year and 2026.
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