Nvidia Price Target Raised To At Wells Fargo

Nvidia (NASDAQ:NVDA) got a vote of confidence from Wells Fargo on Monday, with the bank lifting its price target to $220 from $185 and keeping an Overweight rating. The call from analyst Aaron Rakers implies about 20% upside from Friday’s close and comes ahead of Nvidia’s Q2 2026 earnings release on August 27. The stock has surged 48% in the past three months and 36% year-to-date.

The upgrade follows a Financial Times report that Nvidia and AMD reached a deal with the U.S. government to resume selling certain AI chips in China in exchange for handing over 15% of the revenue from those sales. For Nvidia, the agreement covers its H20 models; for AMD, the MI308 chips. Rakers estimates the deal could restore the full $8 billion in quarterly revenue previously at risk, with the rebound complete by January 2026 and more growth to follow.

He also cited trade data showing stronger U.S. imports and Taiwanese exports of automated data processing machines, often a signal of rising AI server demand. Wells Fargo expects the China sales recovery and robust global trends to push shares toward the new target.

This article first appeared on GuruFocus.