What's Going On With Nvidia Stock Monday?

Nvidia Corp NVDA stock is trading higher Monday amid reports of CEOs of semiconductor chip companies planning to discuss the China policy with the U.S. government.

The executives aim to explain to government officials the repercussions of the stricter embargo on the Chinese semiconductor industry involving AI chips.

Many U.S. chip firms generate over 20% of their revenue from China.

Separate reports claimed that the U.S. plans to bolster control over the export of Nvidia A800 to China.

Nvidia plans to reduce A800 production and allocate the capacity to the H800 to boost its presence in the Chinese market.

Also, Citi analyst Atif Malik maintained a Buy rating on Nvidia and raised the price target to $520 from 420 with a bull case of $600.

The rerating reflected growing GPU demand, i.e., multiple new $2 billion+ U.S. data center orders.

It also reflected a deeper understanding of competition with custom ASIC and AMD GPU in the data centers.

The rerating also reflected multiple global cross-department. 

The analyst boosted the FY24, FY25 and FY26 EPS by 6%, 38%, 30%. 

Malik continued to see favorable risk-reward on accelerating Y/Y data center sales through the year with the China ban, slower macro impact on gaming demand, and competition as key near- to long-term downside risks.

Price Action: NVDA shares traded higher by 1.22% at $460.20 premarket on the last check Monday.