Nvidia shares fall after it says US controls on exports of AI chip will cost it $5 5B

Microsoft is the only other company with a market value above $3 trillion ($3.089 trillion). Nvidia has once again turned out quarterly results that exceeded Wall Street’s forecasts. The company has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. Hence, historically, Nvidia has returned even stronger within 12 months after a significant stock decline. Therefore, it makes sense for retail investors to acquire at least a small stake in this stock to benefit from its future growth prospects. The next estimated earnings date is Wednesday, May 21, 2025, after market close.

Nvidia shares fall after it says US controls on exports of AI chip will cost it $5.5B

Please bear with us as we address this and restore your personalized lists. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Apple’s (AAPL) India suppliers shipped $2 billion worth of iPhones in March ahead of US President Trump’s tariffs. The number of Thanksgiving meals one could buy with Nvidia’s market value of $3.579 trillion, using the $65.51 estimated cost of a 15-item meal from retail intelligence provider Datasembly. The company’s journey to be one of the most prominent players in AI has produced some eye-popping numbers. The Motley Fool has positions in and recommends Jefferies Financial Group, Nvidia, and Taiwan Semiconductor Manufacturing.

Revenue vs. Earnings

Trading Nvidia stock can be highly rewarding, but it requires a solid understanding of both technical and fundamental analysis. Whether you’re day trading for short-term gains or investing for the long term, having a clear strategy, staying informed about Nvidia’s financials, and managing risk effectively are critical to success. By closely monitoring market trends, company developments, and broader economic factors, you can make informed decisions and capitalize on the opportunities Nvidia stock offers. The U.S. government has long been mulling stricter controls on chip sales to China. The Chinese government’s recently introduced energy-efficiency guidelines, also urge companies to use chips adhering to strict requirements in new data centers or expansions. Since Nvidia’s best-selling H20 chip does not fulfil these requirements, it may hurt the company’s Chinese business — accounting for almost 13% of its revenues in fiscal 2025 (ending Jan. 26).

NVIDIA’s stock split before market open on Monday, June 10th 2024. The newly issued shares fxdd review were distributed to shareholders after the closing bell on Monday, June 10th 2024. An investor that had 100 shares of stock prior to the split would have 1,000 shares after the split. Founders Jensen Huang and Chris Malachowsky are still in leadership positions.

Hence, with enterprise demand increasingly shifting from training workloads to more recurring inference workloads, Blackwell is expected to continue to be a significant growth catalyst for Nvidia. Nvidia is also encountering competitive pressures, though other chip manufacturers are significantly behind in the artificial intelligence (AI) race. The company is also experiencing short-term gross margin pressures due to the ongoing ramp-up of its Blackwell systems. Before entering a trade, it’s essential to conduct both fundamental and technical analysis to understand Nvidia’s financial health. NVIDIA scored higher than 98% of companies evaluated by MarketBeat, and ranked 51st out of 654 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Hence, historically, Nvidia has returned even stronger within 12 months after a significant stock decline.
The Motley Fool has positions in and recommends Jefferies Financial Group, Nvidia, and Taiwan Semiconductor Manufacturing.
NVIDIA Corporation ranks among the world’s leading microchip manufacturers and is best known for its contributions in the fields of graphics and gaming.
The next big break came in 1996 with the launch of Microsoft DirectX Drivers which changed how Windows interfaced with games.

Nvidia’s 2025 has been anything but easy. And it’s going to get tougher.

Whilst we try to keep information accurate and up to date, things can change without notice and therefore you should do your own research. One common mistake is overtrading Nvidia stock, especially during periods of volatility. It’s essential to have a clear strategy and avoid impulsive decisions based on short-term market noise. Keeping track of developments in these industries, such as new AI breakthroughs or partnerships with large forex risk management tech companies, can provide trading opportunities. While Nvidia is a strong stock, it’s wise to spread your investments across different sectors and asset classes to protect against broader market downturns.

The company expects further revenue growth in the current quarter that ends in January. Investors will be watching to see if demand for the company’s next-generation AI chip called Blackwell can help it maintain the red-hot pace. NVIDIA Corp NVDA shares are moving lower in Tuesday’s after-hours session after the company said it was recently informed by the U.S. government that it will need a license to export chips to China. Finally, Nvidia stock crashed almost 66% from November 2021 to mid-October 2022, due to concerns about rising interest rates and supply chain disruptions.

The decline was mainly due to the crypto market crash amid the global tech sell-off, resulting in excess inventory buildup for Nvidia.
Just two years after going public, Nvidia was added the the S&P 500 in 2001.
Nvidia reaffirmed its AI prowess in its third quarter earnings report of 2016.
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Mr. Huang has served as the company’s CEO, president, and board member since the company’s founding.

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The company’s data center business, which is where many of its chips are bought for AI processing, brought in $240 million in revenue in the quarter. Day trading involves buying and selling Nvidia stock within the same trading day. This strategy requires a keen understanding of short-term market movements and the ability to react quickly to news, earnings reports, or changes in technical indicators.

Chief Executive Officer Jensen Huang arrived in Beijing Thursday, shortly after the Trump administration barred the company from selling H20 AI chip to China. Jensen Huang reportedly met with the founder of DeepSeek just one day after a House committee revealed a probe into whether the chip supplier violated strict export rules by selling to China. According to 43 analysts, the average rating for NVDA stock is “Strong Buy.” The 12-month stock price forecast is $170.07, which is an increase of 67.68% from the latest price. Select to analyze similar companies using key performance metrics; select up to 4 stocks. Finally, buying above this level could see Nvidia shares climb to $150.

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NVIDIA’s continuous delivery maturity model Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and software solutions for gaming platforms. These reports can provide a snapshot of the company’s financial health and future prospects. A strong earnings report often leads to price increases, while a disappointing report can cause a sharp decline in stock price. Nvidia reaffirmed its AI prowess in its third quarter earnings report of 2016. Nvidia stock price rose about 30% after the company nearly doubled analyst earnings expectations.

Nvidia shares have staged a modest recovery above this month’s low but have lost about a firth of their value since the start of the year as of Wednesday’s close amid uncertainty over Washington’s trade policies and big tech AI spending. Wall Street’s top financial firms, like JPMorgan Chase (JPM), Goldman Sachs (GS), and Morgan Stanley (MS), saw record-high trading revenue in the first quarter, driven by tariff-fueled market volatility. The beta is 1.96, so NVIDIA’s price volatility has been higher than the market average. Risk management is essential when trading Nvidia stock, especially for short-term traders. Setting a stop-loss order can help limit potential losses if the stock moves against your position.

TradingBrokers.com is for informational purposes only and not intended for distribution or use by any person where it would be contrary to local law or regulation. We do not provide financial advice, offer or make solicitation of any investments. Trading and investing in financial instruments comes with a high degree of risk and you can lose money. You should only engage in any such activity only if you are fully aware of the relevant risks. Top institutional shareholders of NVIDIA include GAMMA Investing LLC (0.20%), Rhumbline Advisers (0.19%), Assenagon Asset Management S.A. NVIDIA’s board authorized a share repurchase plan on Wednesday, August 28th 2024, which allows the company to repurchase $50,000,000,000 in outstanding shares, according to EventVestor.

These ten stocks are incredibly resilient and are likely to thrive in any economic environment. In 2015, Nvidia dove head-first into the artificial intelligence space, releasing its first “Drive” chip for autonomous driving in cars, as well as its “Jetson” chip made for embedded computing on smaller AI-powered devices. Perhaps the most consequential advance in Nvidia’s history was the 2006 launch of the company’s CUDA development platform. The platform allowed the company’s GPUs to be used for more than rendering graphics, and would eventually prove to be one of Nvidia’s biggest advantages in the explosively growing world of artificial intelligence and machine learning.

NVIDIA Corporation, a computing infrastructure company, provides graphics and compute and networking solutions in the United States, Singapore, Taiwan, China, Hong Kong, and internationally. It also customized agentic solutions designed in collaboration with NVIDIA to accelerate enterprise AI adoption. The company’s products are used in gaming, professional visualization, data center, and automotive markets. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California. NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally.

Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. Finally, the rapid adoption of AI agents and robotics is also proving to be a significant growth avenue for Nvidia. Blackwell chips are well poised to benefit from the evolving agentic AI opportunity, as it has the computational power and low latency required for building systems capable of making complex decisions and planning. In April 2025, the U.S. government announced its decision to levy a hefty 32% tariff on imports from Taiwan and a 34% tariff from China.

This means that the company could reacquire up to 1.6% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s board believes its shares are undervalued. NVIDIA launched its first product in 1995 called the NV1 and paved the way for 3-D games like Sega’s Virtual Fighter. The next big break came in 1996 with the launch of Microsoft DirectX Drivers which changed how Windows interfaced with games.

Its chips and related software power the fastest, highest-resolution graphics and are featured in a line of products that include solutions for all end-market uses. Along with gaming, NVIDIA microchips are used in visualization, datacenter, AI, and autonomous vehicles just to name a few. The company said via a regulatory filing that it would be required to have an export license to sell its popular H20 chips to China amid concerns they could be used by Beijing to build a supercomputer. Nvidia (NVDA) shares tumbled nearly 7% Wednesday after the company said it’s set to take a $5.5 billion charge as a result of U.S. restrictions on exports of its AI chips to China. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation.