"Note that gains for the chipmaker in that time have helped wipe away the steep drop the stock suffered early in 2025, after it reported it would take a $5.5 billion charge tied to the H20 chip export restrictions to China. While some analysts have raised price targets, others caution about ongoing headwinds due to uncertainty surrounding future U.S.-China trade relations and the potential for stricter regulations. The third-quarter report was stellar on the top and bottom lines due to strong growth in the data center segment."
"Nvidia faces significant hurdles as it navigates U.S.-China trade restrictions and intense market expectations. In the first quarter, export controls on its H20 AI chip-which had been designed specifically to circumvent export restrictions on advanced technology to China-led to the substantial write-down noted above. Analysts believed the ban could result in a $9 billion revenue hit. Some $700 million would affect fiscal first-quarter results, with the remaining $8 billion spread across the second and third quarters."
Shares of Nvidia retreated fractionally in the past week after launching Rubin chips and the Alpamayo autonomous-vehicle AI platform. The stock is 17.5% higher than six months earlier, outperforming benchmarks and wiping away a steep early-2025 drop tied to a $5.5 billion H20 export-related charge. Analysts are split between raising price targets and cautioning about U.S.-China trade uncertainty and potential regulatory tightening. The third-quarter results showed strong top- and bottom-line growth driven by the data center segment. Export controls on H20 prompted a substantial write-down, potential revenue impacts, supply-chain cost risks, and rising competition, yet profitability remains robust.
Read at 24/7 Wall St.
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