Main to remember
- On Wednesday, Morgan Stanley analysts reduced their income projections for NVIDIA, citing the concerns of new chip export borders to China are “more disturbing” than expected.
- NVIDIA said on Tuesday that it planned to take charge of $ 5.5 billion in its first tax quarter after the US government told the flea manufacturer that he would need an export license to sell his H20 china china.
- Analysts have said that depression suggests that the company is not optimistic about obtaining a license, and that new restrictions may have a lasting impact on Nvidia’s activities.
On Wednesday, Morgan Stanley analysts reduced their income projections for Nvidia (Nvda), Citing the concerns of new chip export borders to China are “more disturbing” than expected.
Analysts said they expected an 8% to 9% to Nvidia data center in the following two quarters after the US government told the manufacturer of flea would need a federal export license In order to sell your Chips H20 to China. The H20 is less powerful than the latest Nvidia chips, and had been custom made To respect the export limits for the Chinese market.
NVIDIA said on Tuesday that it planned to take charge of $ 5.5 billion in its first tax quarter due to the government’s decision, which “suggests that the company is not optimistic about obtaining licenses,” said Morgan Stanley. Analysts estimated that the H20 chip represented 12% to 13% of income from the Nvidia data center in April.
Nvidia’s shares fell by almost 7% to close at $ 104.49 on Wednesday, which leads to other flea and technology actions in the midst of concerns, the tightening of export restrictions could have large -scale impacts. (Read Investor live cover of Today’s market action here.)
Legislators have probe Nvidia on the chips used by Deepseek
Development comes like Nvidia’s relationship with Chinese AI startup Deepseek is under increased control of the federal government. The restricted committee of the Chamber on the Chinese Communist Party sent a letter to Nvidia on Wednesday expressing its concerns, Deepseek used limited Nvidia fleas to develop its AI models, which, according to Chinese society, can follow American competitors at a cost fraction.
“The US government is educating American companies on what they can sell and where – we follow government instructions to the letter,” said Nvidia Investopedia.
Deepseek’s rapid climb “makes this poker game with high stakes even more tense,” Wedbush analysts said on Wednesday, adding that Nvidia’s management makes it a “big chip on the Trump table”.
Analysts are still optimistic about Nvidia’s actions
Despite the concerns about the new export restrictions, Nvidia’s actions are still a “higher choice,” said Morgan Stanley, who has maintained his price goal of $ 162, highlighting the potential of the flea manufacturer to benefit from an increasing demand for AI equipment.
Bank of America also reiterated a goal of $ 160, calling for the “convincing” flea manufacturer in view of the high demand for Nvidia flea. Jefferies and UBS were even more optimistic, each reaffirming a goal of $ 185.