The NVIDIA (NVDA) action fell by almost 3% during yesterday’s negotiation session, extending a drop of 7% compared to the day before, after the Asset Administration prohibits exports of its H20 IA Chips in China. Consequently, NVDA is now expecting a turnover of $ 5.5 billion in the first quarter due to Inability to fulfill large orders from Chinese technology giants Like Bytedance and Alibaba (Baba). The drop in action Thursday reduced NVIDIA market capitalization to 2.47 billions of dollars, erasing around 266 billion dollars since the announcement of stricter trade rules.
Analysts have reduced forecasts on Nvda
UBS has cut its course goal for NVIDIA shares from $ 185 to $ 180, pointing to the stricter rules of the US government on the sale of AI fleas in China. According to the company, the new restrictions on the NVDA chip H20 could harm its income and beneficiary margins.
UBS estimates that NVIDIA could lose around $ 700 million in revenues during the April quarter, followed by an additional $ 8 billion in the next two quarters. The company also reduced its gross margin forecasts to 58 to 59% during the current quarter, down compared to the previous estimate of 71%, due to the increase in costs related to prices.
In addition to that, the company has delayed certain chip upgrades. UBS said NVIDIA had decided to stick to its current chip design, called Bianca, instead of going to a more recent design called Cordelia, which has technical problems.
Meanwhile, JPMorgan analyst Harlan Sur said that the new export rules could reduce income and action by action by Nvidia by 8%. This would mean a potential loss of $ 15 billion for $ 16 billion this year. At the same time, Jefferies analyst Blayne Curtis gave a more cautious opinion, predicting a 10 billion dollars to income.
Is the NVDA stock a purchase, a sale or a detention?
Even with all market turbulence, analysts are firm in their confidence in the future of Nvidia. On Tipranks, NVDA Stock Order a strong purchase consensus side based on 37 purchases and five maintenance notes. In addition, the average NVIDIA price target of $ 170.78 implies an increase of increase of 68.27% of current levels.
