Nvidia Stock To Rally 20% After China Export License Agreement Report, Says Wells Fargo: Report

Wells Fargo reportedly indicated that Nvidia Corp. (NVDA) is expected to rally another 20% after reports emerged that the AI bellwether has agreed to pay the U.S. government a 15% cut from the exports of artificial intelligence chips to China.

Wells Fargo analysts expect the China export license agreement and the strength of the U.S. imports of automated data processing (ADP) machines as two catalysts that could drive the 20% rally in the Nvidia stock, according to a CNBC report.

Nvidia’s shares traded 0.7% lower in Monday’s pre-market session. Stocktwits data showed the retail sentiment around the company on the platform was in the ‘bullish’ territory. Wells Fargo analysts expect Nvidia to fully recapture the revenue shortfall due to the ban on the export of AI chips to China. The firm hiked its price target on the stock to $220 from $185, while reiterating its ‘Overweight’ rating on the shares, according to the report.

“We would assume NVDA can recapture the full $8B per quarter revenue impact the H20 China ban was expected to have on the F2Q26 (July) quarter by F4Q26 (Jan),” said Wells Fargo’s Aaron Rakers, according to the report. Rakers added that the Chinese demand for these chips will grow going forward.

A report by the Financial Times on Sunday stated that Nvidia and Advanced Micro Devices Inc. (AMD) have come to an arrangement with the U.S. government to share a cut from the sales of H20 and MI308 chip exports to China, to obtain export licenses for the chips.

NVDA stock is up 36% year-to-date and 68% over the past 12 months.

Also See: Dow Futures Edge Up As Wall Street Parses Earnings: NVDA, AMD, INTC, MSTR, AMC Among Stocks To Watch

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