NVIDIA Corp. (NVDA) shares ticked up about 1% in Friday's premarket trading, riding a broader wave of risk-on sentiment that lifted Nasdaq futures 0.55% and S&P 500 futures 0.70%. But the real story this morning isn't just about market momentum — it's about a new chip that could reshape NVIDIA's China strategy.

According to a Reuters report published Friday, NVIDIA has begun pitching its new Vera AI data center CPU to Chinese clients, and those clients can now place orders. The chip, which is NVIDIA's first standalone CPU designed for agentic AI workloads, could be available as soon as August.

This is a strategic pivot. U.S. export controls have stalled shipments of NVIDIA's H200 AI chips to China, so the company is looking for new ways to tap into what CEO Jensen Huang called a "very important" and "very large" market. In May, Huang said China remains part of NVIDIA's projected $200 billion CPU opportunity, despite the ongoing technology restrictions between the U.S. and China.

Some Chinese cloud providers have already shown interest in Vera, Reuters reported, though large-scale adoption will depend on testing results, software compatibility, and migration costs. When Huang unveiled Vera back in March, he suggested it could become NVIDIA's next multibillion-dollar business. At that time, the company also disclosed that cloud giants like Alibaba Group Holding Limited (Alibaba (BABA)) and ByteDance were already collaborating on Vera deployments.

Vera also puts NVIDIA in more direct competition with Intel Corp. (Intel (INTC)) and Advanced Micro Devices Inc. (AMD (AMD)) in the rapidly growing AI server CPU market. It's a crowded field, but NVIDIA is betting its AI ecosystem and software stack give it an edge.

Technical Setup: Still Building Strength

NVIDIA's long-term uptrend remains intact. The stock trades 5.9% above its 100-day simple moving average of $194.57 and 9% above its 200-day SMA of $189.14. That's the kind of structure that keeps long-term bulls comfortable.

But near-term, there's work to do. Shares are trading 4.7% below the 20-day SMA of $216.15 — a level that often acts as a ceiling during rebounds. The stock is also hovering near its 50-day SMA of $206.32, making that area a key battleground between buyers and sellers. The relative strength index sits at 45.42, which is neutral territory, suggesting the stock is still rebuilding momentum after pulling back from recent highs.

Key resistance is around $217, while support sits near $194.50, close to the 100-day SMA. If NVIDIA can break through that $217 level, it could signal a fresh leg higher.

Earnings and Analyst Outlook

NVIDIA is expected to report earnings on Aug. 26, 2026. Analysts are looking for earnings per share of $2.06, up from $1.04 a year ago, on revenue of $91.70 billion — nearly double the $46.74 billion from the same quarter last year. That's the kind of growth that justifies a premium valuation, and the stock carries a price-to-earnings ratio of 31.4x.

The consensus rating is Buy, with an average analyst price target of $323.83. Recent bullish calls include China Renaissance at $319, Needham at $270, and DA Davidson at $300. So even after the recent pullback, analysts see significant upside.

As of premarket Friday, NVIDIA shares were up 0.62% at $206.13. The Vera news adds a new narrative to the stock — one that's about adaptability and finding growth even when the regulatory environment gets complicated.