China's Repair Market for Banned Nvidia (NVDA) AI Chips Is Booming
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The repair industry has grown so fast that some companies have created new businesses just to handle the influx of work. This sudden boom has led to worries about large-scale smuggling of banned chips, especially since government and military purchase records have confirmed their presence in China. In response, U.S. lawmakers from both political parties have proposed laws to track these chips after they are sold, an idea that was recently supported by President Donald Trump's administration.
Although Chinese tech company Huawei has introduced its own AI chips, Nvidia's products remain the top choice for demanding tasks, such as training large language models. Since many H100 and A100 chips in China have been running nonstop for years, this has led to a higher failure rate and increased the need for repairs. Interestingly, fixing a single chip can cost $1,400 to $2,800, depending on the issue. At the same time, Chinese buyers are now looking to get Nvidia's newest B200 chips, which cost over 3 million yuan (about $415,000) per server, showing just how strong the demand for these processors remains.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 34 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $182.49 per share implies 5% upside potential.
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