Nvidia Hits $5.5 Trillion Amid China Optimism
NVIDIA shares climbed to a record high on Wednesday, lifting the company’s market capitalization above $5.5 trillion for the first time. Consequently, Nvidia became the world’s first company to cross that valuation milestone.
The rally coincided with CEO Jensen Huang joining President Donald Trump on a diplomatic visit to Beijing. Investors viewed the trip as a potential step toward reopening China’s AI chip market to Nvidia after months of severe export restrictions.
The stock gained more than 2% during trading and reached an intraday high of $227.16. Meanwhile, several Wall Street firms raised their price targets as optimism around AI infrastructure spending continued to strengthen.
Wall Street Expands Nvidia Forecasts
Bank of America increased its Nvidia price target to $320 from $300 while maintaining a buy rating. The firm also raised its long-term AI data center market forecast to $1.7 trillion by 2030.
Similarly, Wells Fargo lifted its target price to $315 from $265 earlier this week. Analysts based the revision on stronger long-term earnings expectations tied to global AI infrastructure expansion.
As a result, investor confidence around Nvidia’s growth trajectory remained strong despite ongoing geopolitical uncertainty. The company continues to benefit from accelerating demand for AI accelerators, cloud infrastructure, and enterprise computing systems.
China Remains Central to Nvidia’s Growth
China remains one of Nvidia’s most important long-term markets. However, U.S. export restrictions sharply reduced the company’s advanced AI chip sales in the region during 2025.
After Washington imposed licensing requirements on H20 chip exports, Nvidia’s advanced accelerator revenue from China declined significantly. In addition, the company absorbed a $4.5 billion inventory-related charge tied to the restrictions.
Earlier this year, regulators approved limited H200 chip exports under strict conditions that included volume caps and third-party inspections. Therefore, Huang’s presence during the Beijing visit fueled speculation about possible easing measures for future AI chip sales.
Despite growing optimism, existing U.S. export controls on advanced China-focused AI hardware remain in effect.
