Nvidia looking to sustain Chinese ties following H20 export curbs, Piper Sandler says

Piper Sandler says it 'appears' Nvidia NVDA.O is still looking to sustain strong ties with its Chinese customer base and market opportunity remains significant, following restrictions on its H20 chips

Stricter U.S. regulations on exporting advanced chips to China, including Nvidia's H20, which was designed to comply with previous restrictions, have further limited American chipmakers' access to China's crucial semiconductor market

There are concerns about possible delays in ramping up Blackwell architecture, which could pressure NVDA's stock, Piper Sandler says

However, brokerage adds that competitors lack viable alternatives and NVDA maintains demand visibility through 2026

Media report on Monday showed China's Huawei is preparing to test its latest, most powerful AI processor to challenge NVDA chips

"On the Huawei front, we see any emergence of a local system that pares the performance gap as a threat to sales of NVDA to China," Piper Sandler says

Shares of NVDA marginally up premarket

Piper Sandler rates NVDA "overweight," gives PT of $150