NVIDIA Stock Forecast as the US Clears H200 Chips Sales to China

NVIDIA stock price continued its strong rally today, May 14, reaching its all-time high of $230, after the United States allowed the sale of its H200 chips to some Chinese companies. It has now jumped by over 40% from its lowest point in March this year, a trend that may continue ahead of its earnings next week.

US Allows Sale of H200 Chips to China

The NVDA stock price has become a major beneficiary of the ongoing Trump visit to China. After months of review, the US government finally allowed ten Chinese companies to start buying these chips. Some of these companies are JD, Alibaba, Tencent, and Bytedance.

This is an important catalyst for NVIDIA, a company that once held the largest market share in China’s GPU market. Following the US curbs on these sales last year, the company has not officially recognized any revenue from the country.

Still, Chinese companies have obtained access to the chips illegally. Earlier this year, US authorities sued three people, including Super Micro Computer’s CEO of smuggling these chips to China.

Traders will now watch on whether the two sides will reach an agreement on Blackwell chips shipments to China. US officials have long denied China access to these chips, fearing that they could give China AI supremacy over the US.

NVIDIA to Release Earnings Next Week

Looking forward, the NVIDIA stock price will be in the spotlight as the company publishes its financial results next week. These numbers will be important as they will help to show whether its growth is continuing.

Most importantly, the company will likely provide its new forward guidance after adding its new H200 chip sales in China.

Analysts tracking the company have a bullish outlook for it, based on its previous guidance. Yahoo Finance data shows that these analysts expect its revenue to come in at $79 billion, well above the $44 billion it reported in the same quarter last year. Based on its history, the company is likely to report stronger revenue and earnings than analysts expect.

Recent financial results in the tech industry have been quite strong, which is a good sign for NVIDIA. For example, companies like Microsoft, Meta Platforms, and Google hinted that they will continue boosting their capital spending this year.

NVIDIA to Benefit From the Expected AI CPU Boom

Another key catalyst that may move the NVDA stock after earnings is its upcoming CPU. The company revealed its plans for an AI CPU a few months ago when it invested in CoreWeave.

This is a major development as the company has focused on GPUs for most of its lifetime. It will now compete directly with companies like Intel and Advanced Micro Devices (AMD).

Analysts believe that demand for AI CPUs is there, as evidenced by the recent Intel results. The company sold so strongly that it sold chips it had written off, helping propel the stock to a record high. As such, NVIDIA will likely start making billions of dollars in this new segment.

NVIDIA Stock Price Technical Analysis

The chart above reveals that the NVDA stock continued its strong rally this week. This surge accelerated recently when it crossed the previous all-time high of $212, the upper side of the cup-and-handle pattern.

The stock’s Average Directional Index (ADX) has continued rising and is now at 28, its highest level since September last year. In most cases, an ADX reading of 20 and above means that a trend is accelerating.

Therefore, the stock’s path of least resistance is higher, with the next important target being $250. However, a drop below the upper side of the cup at $212 will invalidate the bullish outlook.