"Note that gains for the chipmaker in that time have 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 the H20 chip export restrictions to China. 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."
"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 stock rebounded modestly after securing a $14 billion ByteDance chip order and finalizing a $5 billion investment in Intel, leaving shares about 18.7% higher than six months prior. An early-2025 decline followed a $5.5 billion write-down tied to export limits on the H20 AI chip and analysts estimated a potential $9 billion revenue impact. The third-quarter results showed strong top- and bottom-line growth driven by data-center demand. U.S.-China export controls, tariffs, and competition from Huawei pose margin and supply-chain risks, but Nvidia's profitability remains strong and the company has raised GPU prices 10–15%.
Read at 24/7 Wall St.
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