NVIDIA is focused on the potential resumption of H200 AI chip sales to China. CEO Jensen Huang expressed optimism at the CES trade show, where reports indicated Chinese tech giants have placed orders for over two million units. This represents a multi-billion dollar opportunity.
Uncertainty persists due to mixed signals from Beijing. NVIDIA is hedging against regulatory and export risks by requiring full upfront payments from Chinese clients. This condition could potentially slow the realization of the opportunity.
Separately, NVIDIA announced a significant push into the automotive sector at CES, which concluded January 9th. The company rolled out its next-generation platform for a new robotaxi alliance. This strategic partnership includes Lucid Group, Nuro, and Uber, aiming to leverage AI to revitalize the self-driving industry.
These announcements follow Mizuho and Evercore reiterating confidence in the stock for 2026. Despite the positive outlook, the share price has remained relatively flat, suggesting a "sell the news" sentiment where high growth expectations are already priced in.