Nvidia’s stock is currently reaching a new all-time high, with an increase of about 4 to 5 percent and a current price of around $170.50 (approximately €146) per share. This price gain is primarily supported by recent news that Nvidia is once again allowed to sell AI chips to the Chinese market.
Background of the Price Development
After months of export restrictions, the U.S. government has now granted Nvidia the permission to apply for licenses to sell the H20 AI chip in China. This decision comes after an agreement in the trade dispute between China and the U.S. to reduce mutual restrictions. The Chinese market is the second most important single market for Nvidia after the U.S., which opens up significant revenue opportunities.
In April, Nvidia had to take billion-dollar write-downs on inventories due to the then-existing export restrictions and was pessimistic regarding future shipments to China. Therefore, the permission to resell chips in China is seen as a significant relief and continues to drive the stock upwards.
Should Private Investors Buy Nvidia Stocks Now?
The recent developments at Nvidia indicate a continuing strong demand for its products in the field of artificial intelligence and underline the company’s growth potential. The return to the significant Chinese market could boost revenue growth.
However, investors should note that the exact content of the agreement between the U.S. and China remains unclear and political risks exist, as trade relations can change rapidly. The stock is already highly valued, so an investment should be well considered and ideally remain part of a diversified portfolio.
For long-term oriented investors, entering the market may be worthwhile due to Nvidia’s strong market position in the AI segment. However, profit-taking or volatility could occur in the short term.
Conclusion: The new all-time high and the comeback in China are clear positive signals for Nvidia’s stock. A purchase may make sense if one believes in the long-term growth potential and is willing to accept political uncertainties.