NVIDIA (Nasdaq: NVDA)) The shares could remain jerky until mid-May While the markets digest the impact of the next export restrictions of the US Government AI, according to Bank of America.
In a note to customers, analyst Vivek Arya said that volatility can persist until May 15, when the “AI dissemination rule” of the Biden administration will officially enter. The regulations limit access to advanced AI fleas to a limited group of 18 level 1 countries, aimed at tightening global distribution controls.
There is a wide range of possible results, and Nvidia’s stock could remain volatile until May 15 “ Liberation Day ” When the impact can begin to appear, Arya wrote.
Despite the regulatory overhang, Arya reaffirmed a purchase note on Nvidia with a price target of $ 200. He noted that the company had a direct exposure of around 10% to China thanks to its H20 GPU line, which could be assigned. Other sectors of activity, including games and the automobile, are considered less at risk.
Arya added that once geopolitical concerns are assessed, Nvidia’s actions could bounce back, calling for a rare opportunity to have a leading name in fast -growing technological sectors.
This article appeared for the first time on Gurufocus.