Famed investor Jim Cramer believes the post-earnings surge in Nvidia (NVDA) shares may be a drop in the bucket compared to where the AI darling could eventually be headed. 

Despite tightened export regulations under President Donald Trump’s administration and the rising trade tensions between the U.S. and China, NVDA reported better-than-expected financials for its fiscal Q1 of 2026 last night. 

Including today’s gain, Nvidia stock is up more than 60% versus its year-to-date low on April 4. 

Sovereign AI Could Push Nvidia Stock Up Further

According to Jim Cramer, foreign investments in artificial intelligence infrastructure or “sovereign AI” as Nvidia calls it, could unlock significant further upside in the semiconductor stock. 

Nvidia has already secured deals worth billions of dollars from Saudi Arabia and the United Arab Emirates in recent weeks. 

And now Jensen Huang, its chief executive, is scheduled for a visit to Europe that experts believe could bring more AI-focused deals to the company based out of Santa Clara, California.  

That said, Nvidia shares are still down more than 8% versus their year-to-date high. 

NVDA Shares Could Rally on Resolution of China Overhang

Another major tailwind for NVDA shares in the second half of this year could be resolution of the China overhang, Cramer argued in a report to members of his Investing Club on Thursday.

Nvidia expects an $8 billion hit from Washington’s curbs on exports of sophisticated AI chips to Beijing in its second financial quarter. 

However, the Nasdaq-listed firm could launch a toned-version of its Blackwell chip to resume its business in China without having to cross U.S. regulations. 

Together, sovereign AI and the resolution of China export restrictions could together push the AI stock up to a new high of $200, concluded Jim Cramer. His price target translates to another 43% upside from here. 

Does Wall Street Share Cramer’s Optimism on Nvidia?

Wall Street analysts share Cramer’s optimism on Nvidia stock. 

The consensus rating on NVDA shares currently sits at “Strong Buy” with the mean target of $167 indicating potential upside of about 20% from current levels.