"Shares of Nvidia Corp. ( NASDAQ: NVDA) are up 5.7% over the past 90 days, despite recently announced partnerships with Intel and OpenAI and several new products unveiled, as the company's market share in China dropped to zero. The stock is still 86.9% higher than six months ago, easily outperforming the S&P 500 and Nasdaq in that time. However, the ongoing rebound from the spring low has sparked mixed reactions."
"Nvidia, the leading artificial intelligence (AI) chipmaker, has been navigating a pivotal moment since posting mixed first-quarter earnings, which one analyst called a victory. The second-quarter report was stellar on the top and bottom lines, but its guidance fell short of high expectations. Note that recent gains for the chipmaker 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 H20 chip export restrictions to China."
"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 5.7% over the past 90 days and sit 86.9% higher than six months ago, outperforming the S&P 500 and Nasdaq. Partnerships with Intel and OpenAI and new product launches coincided with the company's market share in China dropping to zero. The company posted mixed first-quarter results and a strong second-quarter top and bottom line, but guidance disappointed expectations. Nvidia recorded a $5.5 billion charge tied to H20 chip export restrictions to China, with analysts estimating up to a $9 billion revenue impact. The company is shifting toward U.S. AI infrastructure investments while facing U.S.-China trade uncertainty and potential regulatory headwinds.
Read at 24/7 Wall St.
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