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Wolfe Backs Nvidia Despite New U.S. Chip Tariff, Adds Stock to Alpha List

Wolfe Research elevates Nvidia to its Alpha list, citing a firm product ramp despite new tariff risk to China sales.

Overview

  • Nvidia faces a newly announced 25% U.S. tariff on some advanced semiconductors that Wolfe Research says could weigh on H200 shipments to China.
  • Wolfe reiterated an Outperform rating with a $250 price target and named Nvidia its favorite AI idea for 2026 by adding the shares to the Wolfe Alpha List.
  • The firm reports Blackwell is fully ramping and Rubin remains on schedule for a second‑half 2026 ramp, with Rubin expected to deliver a 5x inference gain versus Blackwell.
  • Nvidia has indicated China shipments could total $2 billion to $5 billion per quarter if exports are approved, and Wolfe suggests the tariff could translate into fee‑based allowances as part of broader trade negotiations.
  • Recent results and outlook stay strong, with Q3 revenue at $57 billion and guidance for roughly $65 billion in Q4, as cloud providers prepare to deploy Nvidia’s Vera Rubin platform, including Microsoft’s next‑generation data centers.