Gotrade News - Nvidia stock closed at a record $235.75 on May 14, lifting its market value to $5.36 trillion. The rally is fueled by a 40% Wells Fargo price target hike and fresh China AI chip clearance.
Investors are pricing in a stronger-than-expected fiscal Q1 report on May 20 alongside easing export curbs. Analysts say the AI infrastructure cycle still has years of runway left for U.S. hyperscaler spending.
Key Takeaways
- Nvidia hit a record $235.75 with a market cap of $5.36 trillion on May 14.
- Wells Fargo raised its price target to $315, implying 40% upside for the stock.
- The U.S. cleared roughly 10 Chinese firms to buy Nvidia's H200 AI chip.
Wall Street Lifts Targets Ahead of Earnings
According to Watcher Guru, Wells Fargo lifted its Nvidia (NVDA) price target to $315 on May 12. The bank cited the firm's shift from chipmaker to full AI infrastructure provider.
Wells Fargo highlighted GB200 and GB300 NVL72 server racks priced near $3 million each. Each rack carries 72 GPUs, anchoring data center spending across U.S. hyperscalers.
As reported by The Motley Fool, Wall Street expects fiscal Q1 revenue to jump 79% year over year. Consensus EPS sits near $1.78 versus $0.81 in the prior-year quarter.
CEO Jensen Huang projects a $1 trillion opportunity in Blackwell and Vera Rubin chip sales through 2027. That outlook excludes legacy products and prior-generation Hopper revenue streams.
China H200 Clearance Reshapes the Bull Case
Per Watcher Guru, the U.S. cleared roughly 10 Chinese firms to buy Nvidia's H200 chip. Huang joined President Trump on a Beijing trip to unlock the stalled sales channel.
According to TechBuzz AI, Jim Cramer backs selling AI chips to China to keep Beijing tethered to American innovation. He added the stock can thrive either way given strong domestic demand.
China previously contributed 20% to 25% of Nvidia's data center revenue before earlier curbs. Restoring even part of that pipeline would add a meaningful tailwind to fiscal 2027 guidance.
The clearance also supports memory and networking suppliers tied to AI server builds. Shares of Micron Technology (MU) and Broadcom (AVGO) often track Nvidia order momentum closely.
Analysts caution that some near-term gains may already be priced in ahead of the May 20 print. Any softer China color or guidance miss could trigger a short profit-taking pullback.
Even so, Wells Fargo argues Nvidia's forward P/E sits below year-ago levels despite the run-up. Earnings growth has outpaced share-price appreciation, leaving valuation support intact for now.
Nvidia shares are up roughly 18% since April 14, outpacing the broader S&P 500 over the same window. The five-day rally alone added near 10% as the China clearance and Wells Fargo note hit the tape.
The new Vera Rubin GPU line offers lower training and inference costs than the current Blackwell platform. That cost curve is a key reason hyperscalers keep extending their multi-year capital expenditure commitments.
Traders will watch the May 20 print for guidance commentary on China shipments and Rubin ramp timing. A clean beat with steady gross margin would likely reinforce the bull case heading into summer.
Sources
- Nvidia (NVDA) Stock Forecast: 10% Rally to Unlock $250 This May (Watcher Guru)
- Wells Fargo Predicts Nvidia Stock to Rise 40%, Sees New Price Target (Watcher Guru)
- Cramer Backs Nvidia Selling AI Chips in China But Says the Stock Can Thrive Either Way (TechBuzz AI)
- As Nvidia Stock Hits New Highs, Is It Too Late to Buy? (The Motley Fool)
