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NVIDIA (Nvda+ 0.54%) Actions continue to decrease after the company said it would take a $ 5.5 billion due to the export controls implemented by the Trump administration. After the drop in shares on Thursday, Nvidia has lost more than $ 250 billion in market value since Tuesday.
The flea manufacturer’s stock dropped 4% on Thursday after diving 7% the day before. Nvidia remains the third American company by market capitalization.
Tuesday evening, the company announced the costs of $ 5.5 billion After the US government has moved to block exports from its AI H20 chips in China, citing national security risks linked to their potential use. The chips were developed to comply with the restrictions of the Biden era and had become a key product for Nvidia in China.
Jefferies (Jef+ 2.36%) Analysts said in a note on Wednesday that the H20 ban was expected – but that the size of it was not.
Thursday, Stifel (Sf+ 3.26%) Analysts said they maintained confidence in Nvidia’s long -term growth, even in the midst of these restrictions imposed by Trump. Although short -term volatility is a possibility, analysts said that the company’s overall growth trajectory was strong and reliable.
Analysts of the investment banking company added that the situation highlights current world trade war policies and the effect they have on the technology industry. Dutch company of semiconductors ASML (ASML+ 1.37%)) said the first quarter sales are slightly lower than forecasts and have reported “greatest uncertainty” due to trade tensions, warning that new prices and restrictions could weigh on its prospects for this year – and next year.
STIFEL analysts noted that NVIDIA’s decision to take such a large charge indicates a possible lack of confidence that the necessary export licenses will be granted by the current presidential administration or that no other regulations will be imposed. However, analysts confirmed their “purchase” note and a price target of $ 180.00 for the company.
According to InvestingPro Data, Nvidia maintains a perfect Piotroski score of 9, indicating an exceptional financial force.
Meanwhile, the New York Times (Nyt+ 0.29%) reported that the CEO of Nvidia Jensen Huang went to Beijing To meet Chinese trade officials. According to the state media, Huang underlined his company’s commitment to the foreign market, claiming that the company “would spare no effort” to build compliant products and “serve the Chinese market unshakable”.
But there could be problems for Huang at home: the selective committee of the Chamber on the Chinese Communist Party has launched an investigation into Nvidia’s activities in Asia, focusing on the question of whether the company has violated the export rules, in particular in relation to the startup of Chinese AI Deepseek.
Wedbush Securities said Thursday morning in a note that the flea ban was the “first shots” in a potential trade war and said that Nvidia and other American technological companies are “taken in the eye of this category 5 storm”.