By Harsh Chauhan
Publication Date: 2026-01-07 14:10:00
The chipmaker’s top line could grow at a significantly faster pace in the coming fiscal year.
Shares of artificial intelligence (AI) chip pioneer Nvidia (NVDA +1.45%) delivered a solid performance in 2025, rising by nearly 39%. However, several concerns weighed on the stock throughout the year, including intensifying concerns about a potential AI bubble and the risk posed by the circular financing deals prevalent in the sector.
These factors explain why Nvidia underperformed the PHLX Semiconductor Sector index’s 42% gain last year. Additionally, restrictions imposed by President Donald Trump on the company’s ability to sell its chips into the Chinese market in April led to the company losing a significant amount of business. However, Trump’s recent decision to allow Nvidia to sell its advanced chips to “approved customers” in the Chinese market could set the stage for the stock to beat the market in 2026.
Image source: Nvidia.
Nvidia is reportedly witnessing terrific demand from China
In December, President Donald Trump announced on his social media platform, Truth Social, that Nvidia would be able to sell its advanced H200 processors to select customers in China. However, it will have to pay 25% of its revenue from those sales to the U.S. government. This is good news for a company that seemed on track to clock $30 billion in revenue from the Chinese market in the current fiscal year before Trump’s previous restrictions kicked in.
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