"Shares of Nvidia Corp. ( NASDAQ: NVDA) have surged 24.3% over the past 90 days, despite a 6.0% retreat in the past week as its third-quarter forecast fell short of expectations. The stock is 36.7% higher than six months ago, easily outperforming the S&P 500 and Nasdaq in that time. However, the rebound from the spring low has sparked mixed reactions."
"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 24.3% over 90 days while retreating 6.0% in the past week after third-quarter guidance missed expectations. The stock stands 36.7% higher than six months ago and has outperformed the S&P 500 and Nasdaq. Analysts reacted with mixed views: some raised price targets while others warned of headwinds from uncertain U.S.-China trade relations and potential stricter regulations. The company reported mixed first-quarter results, a strong second quarter, and took a $5.5 billion charge tied to H20 chip export restrictions to China. Export controls could cut up to $9 billion in revenue, and new tariffs risk raising supply-chain costs. Nvidia is shifting toward U.S. AI infrastructure investments and designing new chips for China amid robust data-center demand.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]