Nvidia keeps gaining trust of Wall Street and the latest note by Stifel just adds to that trust. The company has maintained its Buy rating on Nvidia stock, and also kept the price target at $250. This points towards a more positive attitude around the sales to China, even though the regulatory issue is still there.

This puts Stifel deep inside an analyst consensus that is very much positive, where 32 analysts have their earnings upwards, and keeps supporting the world’s most powerful AI chipmaker.

China as a potential catalyst

For Stifel, China is the center of action, and the firm even calls the country a “swing factor to the positive” for Nvidia’s earnings outlook. The note indicates that if the licenses are granted, the sales of H200-based AI chips into China would be “materially additive” to the earnings.

There is high demand in the area and Chinese regulators are reviewing applications now. This highlights the potential upside scenario that is not yet captured in most earnings models.

Stifel pointed out that Nvidia has always been “prudently conservative” when talking about China, even in optimistic scenarios. The main question that remains is whether the U.S and Chinese regulators will eventually allow these sales or not. If the permit is being granted, Nvidia could grasp additional revenue, which is neither included in the forecasts of the sellers nor the buyers.

Attractive Valuation

Stifel advises that the enormous rally in Nvidia’s valuation, the stock’s valuation of Stifel, in relation to the company’s growth, is still very attractive. Currently, Nvidia is trading at a P/E ratio of 46.77, but with a PEG of only 0.78. The firm considers the multiple as a reasonable one given the speed of short-term expansion of the earnings.

Nvidia, during the last twelve months, has dramatically increased its revenue by more than 62%, which is the reason why investors still accept the company’s high valuation.

It is a quite strong perspective that is in full agreement with the general market mood as well. The analysts’ consensus is still very strong in the “Strong Buy” category, which is backed by a whole lot of upward earnings revisions, along with the demand for AI infrastructure that is steadily exceeding the expectations.

Regulatory Uncertainties

While being relatively positive, Stifel pointed out that the issue of uncertainty still exists, specifically with regards to the recognition in Nvidia’s financial statements of the U.S government fees that is associated with the sales to China.

The firm predicts that any such impact will be below the revenue line, which will limit the distortion to the top-line performance. However, the situation will need to be cleared up even further before the investors can fully estimate the profitability effect of the reauthorization of shipments to China.

Momentum beyond China

Beyond China, Nvidia has definitely kept its momentum. The company’s introduction of more demanding payment regulations for customers in China makes it obligatory to pay the full amount upfront for H200 chips.

This is a step that not only points towards the presence of strong demand, but also indicates the company’s power over pricing. Following Nvidia’s presentation at CES, Citi has also reasserted its Buy recommendation with a $270 price outlook, while attention is also growing regarding the forthcoming Rubin chip platform.

The very fact that Rubin can work at higher temperatures is already leading to a complete shift in the data center ecosystem, which gives traditional cooling suppliers a hard time. On the other hand, partners who are ready for liquid-cooled architectures are getting the most out of it.

Also, the talk regarding new alliances, which includes reports that involve Hyundai Motor, has not only put the spotlight on Nvidia’s growing reach in the semiconductor market, but also in the areas of future mobility and industrial AI.

Bottom Line

Stifel’s reaffirmation is a confirmation of a more general message that is quite clear to the entire Wall Street that Nvidia’s growth story is not over yet.

Due to the rapid increase in AI demand, the unpriced potential upside of China, and the upcoming next-generation platforms like Rubin, Nvidia is still considered one of the market’s most closely watched and highly supported stocks as it moves further into 2026.