Why Investors Are Still Betting Big on NVDA Despite China Risks

Nvidia is proving it does not need China to generate explosive growth. The chip giant recently reported quarterly revenue of $81.6 billion, a jump of 85 percent compared to last year. Even with zero sales coming from the Chinese market, the company continues to beat analyst expectations for earnings per share. Traders are taking notice as the stock trades at $202.81, with many analysts setting target prices as high as $305.

Financials suggest the current momentum is sustainable. Data center revenue climbed 92 percent, and the company has secured $119 billion in supply commitments to support its upcoming quarterly guidance of $91 billion. With a trailing price to earnings ratio of 31.06 and a strong focus on capital returns, including a recent dividend hike and an $80 billion buyback plan, the company is prioritizing shareholder value.

Looking ahead, Nvidia is doubling down on its infrastructure. The company plans to spend $150 billion in Taiwan annually to establish a new headquarters by 2030, citing the region as the center of the artificial intelligence revolution. While the loss of Chinese revenue remains a notable risk, the sheer scale of global demand for sovereign AI across Europe and Asia suggests Nvidia remains a dominant force for the long haul.