Why I’m Optimistic About NVIDIA as Jensen Huang Visits China

After a relatively sluggish start to 2026, Nvidia (NASDAQ:NVDA | NVDA Price Prediction) shares finally seem ready to pick up traction. Just when it seemed like the GPU titan was about to lead the Magnificent Seven lower, shares went on to gain close to 8% from their past-month lows. With shares now slightly in the green on the year, as CEO Jensen Huang visits China, there’s every reason to be optimistic, even if earnings season introduces another layer of volatility to the tech and AI trade.

Undoubtedly, it’s a very interesting time for Nvidia’s top boss to be visiting China, especially amid recent developments regarding the firm’s ability to sell the H200 chip there. Undoubtedly, there’s been quite a bit of back and forth regarding the matter, with the U.S. allowing for exports while China seemingly flip-flopped, signaling early rejection (whether it’s due to the 25% markup or a show of domestic pride, given Huawei chips are an alternative, albeit less powerful one), only to approve after warming up to the idea.

Indeed, there’s a lot of rapid-fire politics here, but Huang’s visit, I think, could really smooth relations between the world’s two largest AI superpowers. Of course, I’m sure Nvidia shareholders would start getting excited again as the doors to the massive Chinese market were to open.

At this juncture, it seems like tensions have de-escalated in a big way, probably thanks to Huang. With the first H200 chip imports on the way after China’s recent green light, which was pretty much a 180-degree pivot from where it stood just last week, Nvidia may very well have enough fuel in the tank for its stock to experience another big leg higher.

H200 China sales approval met with a mildly positive reaction

Undoubtedly, it’s tough to tell just how much of the Chinese sales are priced into the stock here. My guess is that many investors might be waiting for Nvidia to update the guidance in light of the recent development. Undoubtedly, it’s tough to gauge how many tens of billions of dollars worth of revenue could be added to the top.

And the approval to sell in China has been met with skepticism by some (could Nvidia chips help China gain ground in the AI race?), it’s unclear what the next big step will be, especially as the Vera Rubin line of chips looks to hit the ground running.

Of course, the U.S. market will get the first helping of the latest and greatest from Nvidia, but will anything down the line be sold in the Chinese market?

Time will tell. Either way, I think there’s a good chance that more China-related upside might need to be baked in, especially if relations improve over time. The big question is whether Nvidia’s chip gains can continue at a rate such that it can make sense for China to buy over the likes of domestic chipmakers (think Huawei) at a 25% markup. It looks like the performance gap isn’t about to be closed anytime soon.

So, perhaps Nvidia’s surprise revenue stream in China might be a driver that many analysts are still underestimating. It’s still early days, but it is exciting to think about the potential for future approvals as well, especially if we reach a point in the AI boom where chip supply finally catches up with demand.

The bottom line on Nvidia stock

Whether it’s the China sales or mounting excitement over Vera Rubin, I think there are enough drivers in this new year to give Nvidia the benefit of the doubt. Given its scorching growth, 47.5 times trailing price-to-earnings (P/E) seems more or less like a fair price to pay for a generational hyper grower that might finally have the firepower to make a run for a $5 trillion market cap.

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