In late pre-market action the stock is down $7.48 (-6.66%) at $103.72.
From MarketWatch, April 16:
Analysts are debating whether Nvidia can still manage sequential growth this year as political developments pressure revenue
Nvidia Corp.’s China business was just dealt a major blow, which has Wall Street analysts wondering about the company’s growth potential.
The semiconductor company disclosed late Tuesday that the U.S. government will require a license for exports of its H20 chip, which was sold into China, Hong Kong and Macau. With Nvidia announcing that it will write off about $5.5 billion in H20 inventory for the April quarter, “you can tell the company isn’t counting on any such ‘licenses’ being granted from this date forward,” Melius Research analyst Ben Reitzes wrote.Nvidia’s stock was down 6% in premarket trading Wednesday.
The question now is what the loss of China business means for Nvidia’s trajectory. Reitzes, for his part, is comfortable predicting that the company can still manage sequential growth throughout the year as it takes advantage of strong spending from Big Tech customers.
“It seems (for now) that capex spending from US hyperscalers for Nvidia chips looks solid at Google, Amazon and Meta,” Reitzes wrote. “While Microsoft has been sending signals of a big deceleration in data center buildouts, its spending for compute should still be solid.”
He thinks Nvidia can post revenue upside for the April quarter, before going on to see 10% sequential growth in the July quarter and 7% sequential growth in the October quarter, aided by the ramp of its Blackwell offering....
....MUCH MORE
"Nvidia faces $5.5 billion charge as US restricts chip sales to China" (NVDA)
