Bank of America Securities’ research report indicated that expected U.S. restrictions on NVIDIA’s (NVDA.US) H20 chip exports to China will impact the company’s sales, though the risk is manageable.
The broker outlined two scenarios, assuming H20 chips account for 6% or 10% of FY2026 sales, stripping off any positive offsets, resulting in a 5%-8% sales impact and a 6%-10% EPS impact. While NVIDIA does not disclose H20 sales data, the broker noted that recent total mainland China sales are assumed to align with 4Q25 levels, representing about 14% of total sales.
The broker viewed NVIDIA’s stock as appealing, with the current price reflecting FY2026 EPS of nearly USD4, below the market’s USD4.5-5 forecast, and China-related risks already partially priced in.
It also saw AI as the fastest-growing long-term opportunity in the semiconductor sector and considered NVIDIA’s stock volatility a buying opportunity. The broker maintained a Buy rating with a target price of USD160.
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AAStocks Financial News
Web Site: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| Nvidia (C) |
10573 |
150 (-) |
0.084 |
5.1 X |
| Nvidia (C) |
10615 |
135 (-) |
0.162 |
4.0 X |
| Nvidia (P) |
10538 |
116 (-) |
0.295 |
2.9 X |
| Nvidia (P) |
10581 |
95 (-) |
0.191 |
2.7 X |
