Bank of America semiconductor strategist Vivek Arya characterized the recent pullback in Nvidia shares as an “indiscriminate” software and chip selloff that neglects the company’s fundamentals. Arya drew parallels to last year’s DeepSeek panic—when AI-related hardware fears sent stocks tumbling before proving unfounded—and reiterated his Outperform rating. He highlighted Nvidia’s year-over-year data center revenue growth of more than 200% in Q4 2025 and noted that AI server deployments remain well above long-term consensus estimates, underscoring continued end-market strength despite sector volatility.

Nvidia’s attempt to re-enter China’s lucrative AI market with its H200 GPUs has stalled amid an extended U.S. State Department national security review. Although President Trump approved the export licenses in late 2025, Beijing’s customs authority has since discouraged orders and prospective Chinese buyers are holding off billions of dollars in planned purchases pending final U.S. clearance. Management forecasts that China sales could represent up to 15% of total GPU revenue in 2026, meaning any prolonged delay risks shaving several percentage points off the company’s year-over-year growth trajectory in its largest non-U.S. market.

Sources cited by Bloomberg report Nvidia is nearing a record $20 billion equity investment in OpenAI, marking the chipmaker’s single largest external funding commitment. If finalized, this transaction would bolster Nvidia’s strategic partnership with the ChatGPT creator—one of its top data center customers—and secure preferential access to next-generation AI model training workloads. Executives estimate that OpenAI and similar hyperscale customers could consume over 30% of Nvidia’s data center GPU supply by 2027, supporting sustained capital expenditure and manufacturing ramp-up plans through 2028.