Shares of Nvidia (NVDA) climbed on Wednesday, extending gains for a sixth straight session and hitting another record high.
The stock jumped around 2% to hit a new record high of $227.16. The company’s market cap stands around $5.4 trillion.
Investors grew more optimistic about the company’s prospects in China ahead of high-level US-China meetings in Beijing.
The rally came even as broader markets struggled following another hotter-than-expected inflation report that pushed Treasury yields to 10-month highs.
The Dow Jones Industrial Average fell 0.4%, while the S&P 500 slipped 0.1%.
The tech-heavy Nasdaq Composite managed a modest 0.1% gain, supported by strength in semiconductor stocks.
Jensen Huang joins Trump’s China delegation
Investor attention centered heavily on Nvidia Chief Executive Jensen Huang after reports confirmed he had joined US President Donald Trump on the administration’s trip to China.
The development followed earlier media reports suggesting Huang had not been invited to join the delegation.
Trump later dismissed those reports in a social media post, saying Huang was already aboard Air Force One.
The visit is seen as particularly important for Nvidia because China remains one of the largest potential markets for artificial intelligence infrastructure globally, despite years of escalating US export restrictions.
Nvidia’s advanced AI chips have faced increasingly strict controls on sales to China over the past four years.
The company has developed modified versions of its processors, including the H200 chip, specifically designed to comply with US export regulations while still serving Chinese customers.
China sales seen as major catalyst
Investors are now closely watching whether Trump’s meetings with Chinese President Xi Jinping could help ease tensions enough to unlock broader sales approvals for Nvidia’s H200 processors in China.
According to KeyBanc analyst John Vinh, Chinese firms could purchase roughly 1.5 million H200 chips, representing approximately $30 billion in potential revenue for Nvidia.
Nvidia has reportedly agreed to direct 25% of those sales proceeds to the US government under the framework being discussed.
Huang previously said the company restarted manufacturing of H200 chips for China earlier this year and had already received customer orders, though Nvidia has not disclosed detailed revenue expectations tied to the market.
China remains strategically important for Nvidia despite Beijing’s growing efforts to reduce dependence on foreign AI hardware through domestic chipmakers and models such as DeepSeek.
Media reports recently stated that Chinese companies have struggled to maintain AI development momentum under current chip restrictions, while also highlighting Nvidia’s continued dominance in global graphics processing units.
Analysts turn more bullish
Wall Street has continued to grow more optimistic about Nvidia’s long-term outlook as demand for AI infrastructure remains strong globally.
BofA Securities raised its price target on Nvidia to $320 from $300 while maintaining a Buy rating.
The firm increased its sales and earnings forecasts for fiscal 2028 and 2029 by 7%, citing sustained growth in AI compute demand and Nvidia’s broad product portfolio across multiple AI workloads.
BofA said Nvidia remains its top sector pick and argued the company is uniquely positioned to benefit from the ongoing expansion in global AI infrastructure spending.
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