Nvidia Price Target Raised To At Wells Fargo

Wells Fargo has raised its price target for Nvidia to $220 from $185, maintaining an Overweight rating and implying approximately 20% upside, primarily driven by a reported deal allowing Nvidia to resume selling its H20 AI chips in China. Analyst Aaron Rakers estimates this agreement could restore $8 billion in quarterly revenue by January 2026. This positive outlook is further supported by strong U.S. and Taiwanese trade data signaling robust global AI server demand, with the upgrade preceding Nvidia's Q2 2026 earnings release on August 27.

Analysis

Wells Fargo has issued a strong vote of confidence for Nvidia (NVDA), raising its price target to $220 from $185 while maintaining an Overweight rating, which implies approximately 20% upside from the recent market close. The primary catalyst for this upgraded outlook is a reported agreement with the U.S. government that permits Nvidia to resume sales of its H20 AI chips to China. This deal, which also includes AMD's MI308 chips, comes with a significant condition: a 15% revenue share from these specific sales must be relinquished. Analyst Aaron Rakers projects this arrangement could fully restore the $8 billion in quarterly revenue that was previously at risk due to export controls, with the recovery expected to be complete by January 2026. The bullish thesis is further substantiated by macroeconomic indicators, specifically rising U.S. imports and Taiwanese exports of automated data processing machines, which are viewed as a proxy for strengthening global AI server demand. This analysis arrives just ahead of Nvidia's Q2 2026 earnings on August 27, setting a high bar for management's forthcoming guidance, especially after the stock's 48% rally in the past three months.

Key Decisions for Investors

• The potential restoration of $8 billion in quarterly China revenue provides a significant tailwind, reinforcing a bullish outlook on Nvidia despite its recent substantial share price appreciation.
• Investors should treat the upcoming August 27 earnings report as a critical validation event, focusing on management's official confirmation and guidance regarding the reported U.S. government deal and its financial impact.
• The 15% revenue-sharing term introduces a new cost structure for China sales that must be factored into long-term valuation models for both Nvidia and AMD, potentially setting a precedent for other technology exports.