How Nvidia can break past the $200 mark

TheStreet Pro’s Chris Versace explains how Nvidia can continue its surge.

Transcript

00:00NVIDIA says it plans to resume its H20 AI chip shipments to China,

00:05the stock reacting positively. How big of a deal is this?

00:09Well, I think, you know, when we look back earlier in the year,

00:11the company was kind of writing down expected revenue

00:14because of some restrictions that were put on them.

00:16But I think Wall Street largely did the same, right?

00:19We saw earnings expectations come down.

00:20We saw revenue expectations coming down.

00:23So this is a pretty big reversal.

00:25How big of a reversal?

00:26Well, 2024, China was about 13% of the company's revenue stream,

00:32call it around $17 billion.

00:34So we're going to see, you know,

00:35multiple billions of dollars coming back in.

00:38We saw that opportunity at the StreetPro portfolio,

00:41and that's why we raised our price target to $200 from $185,

00:45really in response to that.

00:46So $200 a share, that implies a little less than 20% upside

00:50from where it's currently trading, around $170.

00:53What gets it to $200?

00:56Well, I think, you know, this is certainly one announcement,

00:59but I also see multiple announcements coming

01:01that really support that move from $185 to $200.

01:04So what are some of those?

01:06Obviously, we're going to see the rollout of the President Trump's Stargate

01:11as that continues to build throughout the year.

01:13But we're also seeing other companies just talk about adding additional AI

01:17and data center capacity,

01:18the bread and butter business for chip demand for NVIDIA,

01:21whether it's Meta and what they're doing in Louisiana,

01:23whether it's CoreWeave and what they're announcing in Pennsylvania,

01:27as well as international demand as well.

01:29You put it all together,

01:31and I think as we go through the earnings season,

01:33we're going to hear aggregate big tech

01:35and hyperscaler capital spending move higher

01:38back half of this year and 2026.

01:40We'll see you next time.