"Note that recent gains for the chipmaker had 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. 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."
"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 risen following strategic partnerships with AWS, Synopsys, and Mistral AI, and the stock is 32.1% higher than six months ago. Meta and Amazon are exploring in-house AI chips or considering Google's chips. Early 2025 losses were largely erased after a strong recovery, despite a $5.5 billion charge tied to H20 chip export restrictions to China. Export controls on the H20 chip could cause an estimated $9 billion revenue impact, including $700 million in the fiscal first quarter and $8 billion across subsequent quarters. U.S. tariffs, Chinese retaliatory steps, and competition from Huawei's Ascend threaten margins and supply-chain costs, while robust data-center demand and a pivot to U.S. AI infrastructure investments support resilience.
Read at 24/7 Wall St.
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