"Shares of Nvidia Corp. ( NASDAQ: NVDA) have retreated modestly in the past week, even though the company launched its new Rubin platform and debuted its DRIVE AV software for autonomous driving at CES 2026. There were also rumors that Nvidia ordered component makers for its chips for the Chinese market to stop production. Nvidia's stock is 12.7% higher than six months ago, underperforming the Nasdaq in that time."
"Note that the chipmaker's momentum in 2025's second half-after the steep drop the stock suffered early in 2025 due to a $5.5 billion charge tied to the H20 chip export restrictions to China-has stalled. 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."
"Why Invest in Nvidia? 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 have retreated modestly despite product launches at CES 2026, including the Rubin platform and DRIVE AV autonomous driving software. Rumors emerged that Nvidia ordered component makers to stop producing chips for the Chinese market. The stock is 12.7% higher than six months ago but has underperformed the Nasdaq. Momentum gained in the second half of 2025 stalled after an early-2025 steep drop tied to a $5.5 billion charge from H20 chip export restrictions to China. Analysts warn of headwinds from U.S.-China trade uncertainty, potential stricter regulations, supply-chain costs, and competition from Huawei, while data-center strength and U.S. AI infrastructure investments support resilience.
Read at 24/7 Wall St.
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