"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."
"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."
Nvidia's shares rose after approvals to sell advanced chips to China and development of location verification technology, bringing the stock 29.7% above its level six months prior. A prior $5.5 billion charge tied to H20 chip export restrictions erased earlier gains but data-center revenue drove stellar third-quarter top- and bottom-line results. Export controls on the H20 chip had risked up to a $9 billion revenue hit across quarters. U.S.-China trade uncertainty, potential stricter regulations, tariffs, supply-chain cost pressure, and competition from Huawei pose headwinds. The company raised some prices and is pivoting toward U.S. AI infrastructure investments amid robust data-center demand.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]