"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 has faced 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 a substantial write-down. 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 are 4.1% lower than a week ago, with CEO Jensen Huang reportedly planning a trip to China and Moody's upgrading Nvidia to Aa1. The company signed a $20 billion licensing deal with Groq. Nvidia's stock is 3.3% higher than six months ago, underperforming the Nasdaq in that time. Momentum stalled in 2025's second half after a steep early-2025 drop tied to a $5.5 billion charge from H20 chip export restrictions to China. Analysts note potential $9 billion revenue impact from the ban and warn of trade-related headwinds, while data-center growth strengthened top and bottom lines.
Read at 24/7 Wall St.
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