This Could Be a Huge Catalyst for Nvidia’s Business in 2026 | The Motley Fool

Nvidia (NVDA 3.30%) has been a powerhouse stock to own in recent years. Every time its valuation looks like it’s getting a bit expensive, the stock continues to rise even higher. As of Tuesday’s close, the stock was up 38% since the start of the year. It’s especially impressive when you consider that it soared 171% last year and 239% the year before that.

While the returns have slowed, they are still incredible. By comparison, this year, the S&P 500 has risen by 16%. Heading into 2026, investors may expect another slowdown for the world’s most valuable company, whose market cap sits at $4.5 trillion right now.

But there could be a catalyst around the corner, which could make 2026 another stellar year for Nvidia.

Could Chinese chip sales give Nvidia a boost in 2026?

This month, the U.S. government has given Nvidia the OK to sell its H200 artificial intelligence (AI) chips to certain customers in China. It will be available only to “approved customers,” and the U.S. government will take a 25% cut of the sales. The deal will apply to other chipmakers as well. It’s a huge development for Nvidia, which has largely excluded China from its guidance due to the uncertainty around export restrictions.

Previously, the U.S. agreed to allow Nvidia to sell its H20 chip to China in exchange for a 15% cut of sales. That failed to drive growth, however, as the Chinese government…