Nvidia Stock Gains Momentum from Dual Catalysts

Nvidia shares are currently trading within a consolidation pattern, but a significant shift in the underlying landscape is underway. As the stock price has moved sideways, powerful buy signals are emerging from both top-tier analysts and regulatory bodies. A crucial approval from Washington may now address one of investors' primary concerns, potentially setting the stage for the next major advance.

Perhaps the most substantial development is a reported shift in U.S. trade policy. According to sources, the Trump administration has granted approval for Nvidia to sell its H200 AI chips to certain customers in China.

This regulatory decision carries major strategic weight. Uncertainty regarding access to the Asian market has long been an overhang on the stock. With this approval, coupled with reports of new prepayment models for Chinese clients, a vital revenue stream begins to stabilize. This segment had faced considerable pressure from recent export restrictions, making the resolution a critical positive for the investment thesis.

Unwavering Dominance in Core Business

Beyond geopolitics, Nvidia continues to assert its commanding position in the data center GPU sector. At the recent CES, CEO Jensen Huang confirmed that demand for the Blackwell chips remains robust and that cloud GPUs are essentially sold out. While the stock trades at a price-to-earnings (P/E) ratio of approximately 40, making it far from a value pick, this valuation appears reasonable in a historical context when weighed against its growth profile and sector dominance.

Should investors sell immediately? Or is it worth buying Nvidia?

The company's fundamental strength is further highlighted by hard numbers from its largest customers. Investment expenditures by major hyperscalers are projected to surge by 32% to around $540 billion by 2026. This massive capital outlay represents a direct tailwind for Nvidia's core business.

Wall Street Eyes Substantial Upside

The optimism on the regulatory front is matched by increasingly bullish sentiment from financial institutions. Despite Nvidia closing nearly flat at $184.86 on Friday, analysts at leading investment banks have rarely been more positive.

Both Mizuho Securities and Bank of America have raised their price targets to $275 per share. This implies a potential upside of nearly 50% from current levels. Mizuho analyst Vijay Rakesh notes that Nvidia is optimally positioned to capture the lion's share of the coming hyperscaler investment wave. Bank of America's Vivek Arya is looking further ahead, referencing the anticipated "Vera Rubin" platform expected in the second half of 2026.

All eyes are now on the upcoming quarterly earnings, where revenue is anticipated to be near $65 billion. A decisive breakout above the current consolidation range could bring the psychologically significant $200 mark within reach. With the Vera Rubin architecture in development and the China situation clarified, the fundamental setup for 2026 appears increasingly favorable.