Regardless of a pointy pullback in Nvidia Corp‘s (NASDAQ:NVDA) shares this month, a possible coverage reversal on U.S. chip exports to China may dramatically increase the corporate’s outlook, in keeping with Deepwater Asset Administration’s Gene Munster.
Trump Reportedly Administration Weighs H200 Exports To China
On Friday, Reuters reported that the Donald Trump administration is contemplating permitting Nvidia to restart gross sales of its high-end H200 AI chips to China.
The Commerce Division is reportedly reviewing restrictions that beforehand blocked the chip over nationwide safety issues.
The transfer would mark a big shift for Nvidia, whose China enterprise collapsed after export bans tightened.
Beforehand, Nvidia CEO Jensen Huang mentioned the corporate’s market share within the area plunged from 95% to zero, including that he could not think about “any policymaker considering that is a good suggestion.”
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Munster: Reopening China Might Flip 49% Progress Into 72%
In a video posted on social media, Munster mentioned the potential coverage change represents a “materials win” for Nvidia and buyers, estimating that turning H200 shipments again on may elevate Wall Road’s anticipated income progress from 49% to roughly 72%.
He mentioned former Trump administration officers instructed him that Nvidia chips have been a central level in U.S.–China commerce discussions, and China’s continued pursuit of Nvidia’s {hardware} underscores its technical benefit.
Munster referenced earlier feedback from Huang that Nvidia may generate as a lot as $50 billion in China income in 2025 utilizing compliant chips. Including that determine to the Road’s present income expectations — about $330 billion — explains the bounce to a low-70% progress fee, he mentioned.
Even With out China, Analysts Could Be Undervaluing Nvidia’s Core Momentum
Munster argued that consensus estimates are “mis-modeling” the again half of subsequent yr.
He mentioned powerful comparisons in early 2026 masks true momentum — noting that adjusting for final yr’s China income would present Nvidia’s January quarter rising practically 100%.
As comparisons ease later within the yr, he mentioned analysts nonetheless assume an pointless slowdown. In his view, Nvidia is positioned to develop “60% plus” even when China stays restricted, and “75% plus” if H200 exports resume.
Inventory Slides Regardless of Document Earnings
Nvidia shares fell 0.97% Friday and are down greater than 13% in November, their worst month since March, regardless of reporting $57 billion in third-quarter income — a 70% bounce from final yr.
In the meantime, market commentator The Kobeissi Letter highlighted the extraordinary scale of Nvidia’s efficiency. It famous that the chipmaker’s document third-quarter income is greater than 2.5 instances the mixed $22.9 billion reported by Intel Corp (NASDAQ:INTC) and Superior Micro Units, Inc. (NASDAQ:AMD).
Nvidia additionally delivered $31.8 billion in internet revenue, surpassing Intel’s and AMD’s mixed quarterly income by practically $9 billion.
For the reason that first quarter of 2023, Nvidia’s revenue has surged 2,170%, whereas income has climbed 700%, in contrast with way more modest features at rivals: Intel’s gross sales rose simply 7%, and AMD’s elevated 70% over the identical interval.
Kobeissi mentioned the dimensions and velocity of Nvidia’s progress stay “unprecedented” within the semiconductor trade.
Nvidia ranks within the 98th percentile for Progress and the 92nd percentile for High quality in Benzinga’s Edge Inventory Rankings. Click on right here to see the way it stacks up towards its friends.
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Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.
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