Nvidia Stock Set to Soar by 2026 in $40 Billion Deal

Shares of Nvidia, the leading AI chip manufacturer, are anticipated to experience significant growth by 2026. A robust 39% increase in its stock was observed in 2025, despite some hurdles. Concerns regarding an AI bubble, coupled with challenges in financing within the industry, contributed to Nvidia’s slower performance compared to the PHLX Semiconductor Sector index, which surged by 42% last year. Moreover, restrictions on chip sales to China imposed by President Donald Trump had a notable impact on the company’s business.

Nvidia’s Potential Growth Driven by China

In April, Trump’s restrictions limited Nvidia’s ability to sell chips to the Chinese market. However, in December, he announced that Nvidia could resume selling advanced chips to “approved customers” in China. This could significantly enhance Nvidia’s revenue, which was projected to reach $30 billion from China in the current fiscal year before the restrictions.

Revenue Opportunities from H200 Processors

Nvidia has reported a strong demand for its H200 processors in China. Chinese tech companies have ordered over 2 million of these advanced chips, which are six times more powerful than Nvidia’s previous offerings. The H200 chips are priced at $27,000 each. After the government royalty of 25%, Nvidia would net approximately $20,000 per chip sold to Chinese customers.

• Projected Revenue from China: If Nvidia sells 2 million H200 processors, it could generate $40 billion in revenue by 2026.
• Market Impact: This revenue surge can significantly affect Nvidia’s overall performance, driving its market cap to an estimated $7.5 trillion.

Wall Street Forecasts

The consensus revenue estimate for Nvidia’s fiscal 2027 is $320 billion, representing a 50% increase from the current fiscal year. Analysts have not fully considered the additional potential revenue from the China market in their forecasts. Should Nvidia realize $40 billion from Chinese sales, its total revenue for fiscal 2027 could rise to $360 billion, marking a remarkable 69% increase.

Nvidia currently trades at a forward price-to-sales ratio of 21. This valuation reflects its strong growth potential, suggesting that the stock may continue to perform well in 2026. With these developments, Nvidia is likely to remain a top player in the booming AI sector.