Nvidia Corporation shares gained 3.7% to close at $204.12 on Wednesday following reports that China has licensed ZTE Corporation and other firms to purchase Nvidia H200 chips. This development signals a potential easing of export restrictions, providing a significant boost to Nvidia's sales in the Chinese market. Chinese officials recently told Alibaba Group Holding Limited, ByteDance and DeepSeek that they may soon receive permission to purchase some Nvidia H200 chips, the Information reported on Wednesday, citing people familiar with the matter.

AI Trade Broadens Beyond Nvidia

The rebound follows a sharp valuation reset, with Nvidia losing roughly $1 trillion in market value since its May 14 record high, according to a Bloomberg report. The shares have fallen 16% as investors rotated into other semiconductor stocks, such as Micron Technology, Inc., leaving the stock trading at its cheapest valuation since before the artificial intelligence boom. Despite the multiple compression, Wall Street continues to raise earnings estimates, projecting 82% revenue growth and 90% profit growth in fiscal 2027. Bloomberg Intelligence data indicates Nvidia increased its server GPU market share to 97% at the end of 2025.

Technical Analysis

Nvidia is trading about 1.3% above its 20-day simple moving average of $201.69 but remains roughly 2.5% below its 50-day SMA of $209.52, suggesting the intermediate trend is still recovering. The stock trades about 3.6% above its 100-day SMA of $197.27 and 6.8% above its 200-day SMA of $191.40. The relative strength index stands at 50.60, indicating balanced momentum. Key resistance sits near $214, while support is around $199.50.

Earnings & Analyst Outlook

The next major catalyst arrives with the Aug. 26, 2026 earnings report.

Analysts maintain a Buy consensus rating with an average price forecast of $323.83. Recent analyst moves include China Renaissance initiating with a Buy (Target $319 on June 5), Needham maintaining a Buy (Target $270 on June 2), and DA Davidson maintaining a Buy (Target $300 on June 1).

Top ETF Exposure

Because Nvidia carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Jim Cramer, the CNBC host, stated on Tuesday that the technology sector has become 'hostage' to SK Hynix, highlighting the company's critical role in the artificial intelligence supply chain. He emphasized that Nvidia Corp. cannot ship its AI systems without sufficient high-bandwidth memory (HBM) supply, which SK Hynix dominates. This dependency makes the memory manufacturer's production capacity and demand outlook vital indicators for the broader AI market and Nvidia's growth trajectory.

SK Hynix’s AI Role

The primary driver of this dependency is HBM, a type of memory chip designed to move massive amounts of data between memory and AI processors at extremely high speeds. Unlike traditional memory chips, HBM has become an essential component in Nvidia’s latest AI accelerators, including its Blackwell platform. SK Hynix has emerged as the leading supplier of these advanced chips, elevating its status from a memory manufacturer to a pivotal player in the AI ecosystem.

Why Nvidia Investors Should Watch

Investors increasingly view SK Hynix’s earnings and commentary as an early read on AI infrastructure spending. Strong HBM demand reinforces confidence in Nvidia’s ability to meet soaring demand for its chips, while any signs of supply constraints can quickly ripple across semiconductor stocks. Cramer noted that the market's focus remains on SK Hynix, Samsung Electronics Co., Ltd., and Sandisk Corporation, rather than Micron Technology, Inc., reflecting SK Hynix's position as the industry's primary AI memory barometer.

Market Concentration Concerns

Cramer also pointed to concerns regarding market concentration and trading flows. He suggested that SK Hynix has become 'leveraged to ridiculous leveraged ETFs,' including ProShares Ultra SK hynix, GraniteShares 2x Long SK Hynix Daily ETF, and Leverage Shares 2X Long SK Hynix Daily ETF. This dynamic implies that trading flows, rather than just fundamentals, could be amplifying volatility in AI-related stocks.

For Nvidia investors, the takeaway is that while GPUs remain the face of the AI boom, the companies supplying the memory behind them are becoming equally important to monitor.