Nvidia Denies Rumors of China Re-Entry with B40 Chip—Market Speculation Persists

Nvidia (NVDA) has officially denied reports suggesting the company is preparing to re-enter China's semiconductor market with a new B40 chip. The rumor mill had been buzzing with speculation about Nvidia's potential return to the lucrative but heavily regulated Chinese tech sector.

Analysts remain skeptical—after all, where there's smoke, there's usually a hedge fund trying to fan the flames. The denial hasn't stopped traders from positioning for volatility, with NVDA options volume spiking on the news.

China's AI chip market remains a tantalizing prize for Western tech firms, but geopolitical tensions and export controls continue to complicate any major moves. For now, Nvidia seems content to watch from the sidelines—or at least that's what they want us to believe.

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Indeed, Nvidia has clearly stated that it is not yet re-entering China’s market. The company explained that it is still working on potential designs and must get U.S. government approval before moving forward. “Until we settle on a new product design and receive approval, we are effectively foreclosed from China’s $50 billion data center market,” Nvidia said. This comes after Nvidia had to cancel its Hopper series chips in China due to U.S. export restrictions, which resulted in a $5.5 billion inventory write-off and $15 billion in lost sales.

Nvidia CEO Jensen Huang recently said that the company is exploring ways to serve Chinese customers again, but no new product has been approved yet. For now, Nvidia’s ability to re-enter the market depends on meeting U.S. rules and getting the required approvals. Nvidia stock, which dipped on Thursday after the initial reports, bounced back on Friday after ZJK retracted its statement, which shows just how sensitive investors are to any news about Nvidia’s plans for China.

What Is a Good Price for NVDA?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 35 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $172.36 per share implies 21.5% upside potential.