"Shares of Nvidia Corp. ( NASDAQ: NVDA) are 2.9% higher than a week ago. China has authorized the import of the first batch of H200 AI chips, and Nvidia says it will invest $2 billion in cloud provider CoreWeave to accelerate the buildout of "AI factories." It announced new offerings at the CES trade show, and CEO Jensen Huang spoke at the World Economic Forum."
"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."
"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."
Nvidia's stock shows short-term gains but lags the Nasdaq over six months. China authorized H200 AI chip imports while Nvidia plans a $2 billion CoreWeave investment to expand AI infrastructure. New CES products and executive appearances signal continued market engagement. Early-2025 export controls and an H20-related write-down, plus a $5.5 billion charge, disrupted momentum and contributed to a stalled recovery. Analysts expect robust data-center demand but warn of U.S.-China trade uncertainty, potential stricter regulations, supply-chain cost pressures, and rising competition from rivals such as Huawei's Ascend chips.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]