Wolfe Research has maintained an Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $250, the firm announced on January 15. This target aligns with the consensus one-year median and suggests an upside potential of 33.60%.
The rating comes after the White House announced a 25% tariff on some advanced semiconductors. Wolfe Research indicates this tariff is likely to affect NVIDIA's shipments of its H200 chips to China.
The firm notes that the tariff imposition will enable the U.S. government to collect a predetermined payment in exchange for allowing NVIDIA to export H200 chips to China. A complete resolution, the firm suggests, may be part of broader trade negotiations between the two countries.
According to Investing.com, NVIDIA had previously stated that shipments to China could represent $2 billion to $5 billion per quarter, which would be nearly 5% of the company's current quarterly revenue, but only if such exports receive approval.