NVIDIA Price Target Raised by Wells Fargo

Nvidia Stock Surges as Wells Fargo Lifts Target Amid Pivotal China AI chip Deal

Wells Fargo raises Nvidia stock forecast to $220, citing a lucrative US-China AI chip deal and robust market demand ahead of Q2 earnings.

Nvidia (Nasdaq: NVDA) received a meaningful vote of confidence on Monday as Wells Fargo substantially lifted its price target for teh semiconductor giant.The upgrade follows reports of a crucial agreement allowing AI chip sales to resume in China,potentially restoring billions in revenue and fueling strong market optimism for the company’s future.

Wells Fargo Backs nvidia’s Ascent

Wells fargo boosted its price target for Nvidia stock to $220 from $185, while maintaining an overweight rating. This revised target implies an upside of approximately 20% from Friday’s closing price, signaling strong conviction in the chipmaker’s growth trajectory. The positive outlook from the bank comes ahead of Nvidia‘s Q2 2026 earnings release,which is set for August 27. The company’s stock has already demonstrated impressive momentum, surging 48% in the past three months and 36% year-to-date.

Did you know? – Nvidia’s stock has experienced substantial growth this year, reflecting its dominance in the rapidly expanding artificial intelligence market. The company’s GPUs are essential for training and deploying AI models.

China AI Chip Deal Unlocks Billions

A major catalyst for the analyst upgrade is a recent Financial Times report detailing a new agreement between Nvidia, AMD, and the U.S.government. This deal permits the resumption of sales for certain advanced AI chips in China,a market previously restricted due to geopolitical tensions. In exchange, the companies will hand over 15% of the revenue generated from these specific sales.

For Nvidia, the agreement specifically covers its H20 models, while AMD‘s MI308 chips are included. Analyst Aaron Rakers of Wells Fargo estimates that this strategic agreement could fully restore the $8 billion in quarterly revenue that was previously at risk due to export controls. Rakers projects that this revenue rebound will be complete by January 2026, with further growth expected beyond that timeframe.

Pro tip: – Export controls are government regulations restricting the sale of specific goods, like advanced semiconductors, to certain countries for national security reasons. These controls significantly impact tech companies.

Surging Global Demand Reinforces Outlook

Beyond the impactful China AI chip deal,Rakers also highlighted robust global market trends contributing to the optimistic Nvidia stock forecast. He cited recent trade data indicating stronger U.S. imports and Taiwanese exports of automated data processing machines. These figures are often a leading indicator of rising AI server demand, which directly benefits Nvidia as a dominant supplier of the processors crucial for these powerful systems.

Wells Fargo anticipates that the recovery of China sales co

Reader question: – How might this deal with China affect other semiconductor companies, and could it set a precedent for future trade negotiations in the tech sector?

Why: Geopolitical tensions led the U.S. government to restrict AI chip sales to china, impacting nvidia’s revenue. A new agreement between Nvidia, AMD, and the U.S. government allowed for the resumption of sales of certain AI chips to China.

Who: Key players include Nvidia (Nasdaq: NVDA), AMD, Wells Fargo, the U.S. government, and Aaron rakers (Wells Fargo analyst).

What: Wells Fargo raised Nvidia’s stock price target to $220