"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 climbed 16.9% over the past 90 days and 89.5% higher than six months earlier, outperforming the S&P 500 and Nasdaq. The company announced a multi-billion-dollar strategic partnership with Intel and a $100 billion investment in OpenAI. First-quarter results were mixed, while second-quarter revenue and earnings beat estimates though guidance disappointed. A $5.5 billion charge tied to export restrictions on the H20 chip reflected U.S.-China trade controls that analysts said could cost as much as $9 billion in revenue. Nvidia is shifting toward U.S. AI infrastructure investments and new chip designs for China amid robust data-center demand and regulatory uncertainty.
Read at 24/7 Wall St.
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