Nvidia stock drops ahead of earnings as investors weigh potential Trump export rules, Blackwell delays

Key Points

  • Nvidia stock dropped 2.8% due to potential delays in AI chip production and new export restrictions.
  • The Trump administration is considering further export restrictions on the chip sector to limit China's AI advancements.
  • Nvidia's stock has lost over 9% in the last five trading days, ahead of its Q4 earnings report.
  • Analysts maintain a bullish outlook despite concerns over export controls and production delays.

Summary

Nvidia's stock experienced a significant decline of 2.8% on Tuesday, influenced by reports of potential delays in the production of its AI Blackwell chips and looming new export restrictions from the Trump administration aimed at curbing China's AI development. The administration's proposed sanctions target specific Chinese companies and aim to restrict international semiconductor maintenance in China. This news follows the introduction of cost-efficient AI models by Chinese firm DeepSeek, which had already unsettled U.S. markets. Over the past five trading days, Nvidia's stock has fallen by over 9%, reflecting investor concerns ahead of the company's fourth-quarter earnings report. Despite these challenges, Wall Street analysts remain optimistic about Nvidia's future, citing strong demand for its current products even if new releases face delays. The company's major customers, including Microsoft, Amazon, Google, and Meta, had previously reduced orders due to issues with Nvidia's Blackwell chips, yet the overall market sentiment leans towards Nvidia maintaining its leadership in AI technology.

yahoo
February 25, 2025
Stocks
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