Investors focus on the transformation on the impact of NVIDIA export restrictions on China
NVIDIA is expected to report its profits on Wednesday, but it seems that investors are focusing on the impact of export restrictions on China. The company continues to see a huge growth of sales of graphics processors, with the demand for artificial intelligence infrastructure that does not show any signs of cooling.
The mood looks different to the Wednesday profit report in NVIDIA from what it was in the last quarters because of China. The Trump administration sent a letter of technology on April 9, which requires an export license for the H20 SIM from NVIDIA, a copy of the Hopper processor specifically designed for the Chinese market to comply with the restrictions of the previous United States.
NVIDIA wants to take 5.5 billion dollars on the imports of H20 units to China
break: $ Nvda NVIDIA says that the United States government prevented them from selling H20 chips to China for national security reasons
As a result, they expect to take a $ 5.5 billion fees to Q1 financial profits$ Nvda -3.5 % pic.twitter.com/Izo4CVCCXJ
Aminit (Amitisinvesting) April 15, 2025
In a file, NVIDIA responded to the new restrictions, saying it was so intended To take 5.5 billion dollars, delete the stock associated with the export of H20 graphics processing units to China and other destinations. BNP Paribas analysts have argued that he was the biggest deletion in the history of the chip industry.
Analysts believe that the potential effect of writing NVIDIA on future revenues will be huge. David Okonor, an analyst at BNB Paribas, admitted that the removal of inventory involves $ 15 billion in revenue for 12 months. H20 AI chips were born of $ 12 billion to $ 15 billion in revenue in 2024.
During the administration of President Joe Biden, the United States government has issued concerns that artificial intelligence chips from NVIDIA and other semiconductor companies such as Micro advanced devices can be used to create giant computers for the military purposes of opponents.
In February, the CEO of Nvidia Jensen Huang said in the last quarterly profit call in February that the revenues from China have decreased to half of the control levels before export. He also warned that the competition in China is increasing, and for the second year in a row, Nvidia Huawei was included as a competitor in its annual presentation.
According to LSEG, analysts expect NVIDIA to publish 66 % revenue growth to $ 43.28 billion for the quarter ending in April. This level represents a sharp slowdown a year ago when the company recorded more than 250 % growth.
The new export licensing requirements for the United States raised a lot of uncertainty surrounding expectations for the rest of the year. The average analyst estimated a 53 % growth report in the current quarter, with the expectation of a full fiscal year in January.
“Although our thinking at the time was that this was at least an expected part by the administration team, it became clear after the ban that the company obtained indications that the H20 would be fine and that they were surprised financially.”
Morgan Stanley analysts.
The bank analysts admitted on Tuesday that the possible issues that may hinder investors, such as the impact of the US ban on the sale of H20 chips to China, had a good look, and that the way to a clear sequence. Analysts said that they do not buy the arrow openly for a quarter, but they buy it for what they believe will come.
NVIDIA offers a plan to export chips to the Middle East
Huang said earlier this month in Taiwan that NVIDIA used to have a 95 % market share of graphics processing units in China, but it was reduced to 50 % under the restrictions of the chips. Technology Company He said In a file with the Supreme Education Council in February, annual sales of $ 17.1 billion were recorded for customers who have a title in China, including Hong Kong, the fourth largest market in the company.
In recent weeks, NVIDIA CEO has argued that restricting the export of NVIDIA chips to China will only motivate engineers there to invent their treatments, which enhances the semiconductor industry in the country. The effect of the most strict export restrictions on China is diluted due to the growth of demand in the Middle East.
Nafidia open A deal to supply chips to start the Saudi operation earlier this month and also participates in a deal that allows the United Arab Emirates to import advanced American chips. Wedbush analysts said that the spending of Amnesty International from Saudi Arabia and the United Arab Emirates can help fill the void left by the uncertainty in China in the future NVIDIA work.
Your encryption news deserves attention – The main difference wire It places you on more than 250 higher sites
