Considering the monumental gains clocked by Nvidia (NVDA) stock in the last five years, the price action has been relatively subdued in the last few months. However, NVDA stock is likely to remain in a long-term uptrend considering the industry outlook and continued positive developments.
In recent news, China has approved the import of a first batch of H200 chips, Nvidia’s second most powerful AI chip. Currently, ByteDance, Alibaba (BABA) and Tencent (TCEHY) have all received the go-ahead to buy more than 400,000 H200s. Additionally, China has conditionally given its AI startup, DeepSeek, approval to purchase H200 AI chips.With orders starting to flow, this development will likely have a positive impact on NVDA stock as growth potentially accelerates. To put things into perspective, China previously represented 20% to 30% of Nvidia’s revenue share.
About Nvidia Stock
Headquartered in Santa Clara, California, Nvidia has been one of the biggest beneficiaries of the structural tailwinds for artificial intelligence. The company identifies itself as a global leader in accelerated computing and currently commands a market capitalization of $4.64 trillion.
Nvidia’s growth has been backed by innovation and the company has 8,700 granted and pending patents globally. As a “full-stack computing infrastructure company with data-center-scale offerings,” Nvidia believes that it has a $1 trillion available market opportunity.
For the third quarter of fiscal 2026, Nvidia reported revenue of $57 billion, which was higher by 62% on a year-over-year (YOY) basis. Robust top-line growth was associated with healthy GAAP gross margin of 73.4% for the quarter.
In the last six months, NVDA stock has trended higher by about 8%. With strong earnings growth expectations coupled with impending exports to China, the outlook remains positive.
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Nvidia’s Big Addressable Market
A key growth catalyst for Nvidia is its re-entry into the Chinese market. However, even as China sales declined in the last 24 months, Nvidia’s growth remained robust. Therefore, Nvidia’s bullish growth outlook has multiple drivers.
Nvidia expects accelerated computing, agentic applications, and AI models to be on track for $3 trillion to $4 trillion in annual AI infrastructure build. This will ensure that the growth momentum sustains.