- Once Trump administration has put restrictions About the sale of semiconductors abroad, Nvidia He said that the financial submission claimed that it would take $ 5.5 billion. But there may be more pain for the chips. Wedbush analysts estimate that China is just over 10% of NVIDIA’s income, and it is suspected that its profits can fall for the same amount in future quarters.
The escalation trading war between the two largest economies in the world creates a difficult position for Nvidia.
Trillon of Dollars, chips said it could no longer export a key chip to China due to fresh Trump administration restrictions. In the submission of securities on Tuesday, Nvidia said it would take $ 5.5 billion charge From the ban on export.
But it may not be the only hit.
Wedbush analysts suspect that China is just over 10% of Nvidia’s revenues. Analysts have said they believe that China is ready to bring even greater profits for Nvidia because of increased demand. In any case, analysts wrote: “We believe that we should now assume that NVDA revenues are probably reduced by ~ 10%in future quarters,” on April 16.
Nvidia refused to comment. Leading analyst notes Matt Brasson did not immediately respond Fortune Request for comment.
In a separate Wedbush Analytics note led by Dan Jus wrote the transition of President Donald Trump to block Nvidia from selling their key chips H20 to China, was the first shot in a trading war for the technological world because America placed a 145% tariff on China And the country avenged.
“This is just the beginning of what will be a long process between the US and China,” Jus wrote.
In early April, Trump presented a wide tariff mode. Later he pressed intermissionAnnouncing a 90-day grand period for the conversation, given the 10% tax on other countries. China was an exception.
After being announced, there was some kind of relief exemption on electronics such as smartphones, computers and semiconductors. But Trump later said comes for technology. Monday still started with a technical action, but it seems it was short-lived.
Global stocks And three major indices fell on Wednesday. Technological heavy Nasdaq They left more than 3% as of writing. Nvidia’s stock decreased by almost 9%.
The disclosure of Nvidia’s information, Jus said, is a clear sign of Nvidia has great restrictions on the sale of China because the Trump administration knows that there is one chip and a company that fueled artificial intelligence: Nvidia.
In the statement to WealthJus wrote: “China has” not introducing a sign “in front of it from the White House, and this will turn into a reduction in Nvidia and other technical players. The economic influence of these tariffs is just starting to play, and Nvidia is the first blow thrown into this tariff match.”
Originally this story was presented on Fortune.com
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2025-04-16 18:34:00
Alena Botros
