Nvidia stock continues to soar as analysts raise targets to $250 on AI chip demand. Can the rally hold, or is NVDA getting ahead of itself?

China generated $17 billion in revenue for Nvidia in 2024, roughly 13% of the company's total revenue, Versace said. In response to the news, he lifted his Nvidia price target to $200 from $185 and reiterating his One rating.

Nvidia investors have been concerned about the loss of sales to an important market. The company announced it would resume AI chip sales to China after a pending approval from the Trump administration.

One analyst boosted his price target on Nvidia’s stock to a level that would imply a $5.7 trillion market cap, with the chip maker seemingly cleared to sell its H20 chip in China again.

Even at record highs, Nvidia’s stock may not be as expensive as it is touted to be. Some valuation metrics suggest room for upside

"We believe sovereign demand is already contributing up to billions of dollars in 2025" and should ramp up further in 2026, analysts Atif Malik and Papa Sylla wrote. Nvidia is involved in "essentially every sovereign deal," the note said, making the company central to the global race to build national AI infrastructure.