Connect with us

Hi, what are you looking for?

Oracle of  Omaha Says – Investing and Stock NewsOracle of  Omaha Says – Investing and Stock News


U.S. restricts sales of high-end chips to China: sell Nvidia stock now?

Nvidia Corporation (NASDAQ: NVDA) is down 10% on Thursday after the U.S. announced new licensing requirements on sales of sophisticated chips to China and Russia.

What does that mean for Nvidia Corp?

For Nvidia, that means export restrictions on its A100 and H100 products. Consequently, the multinational warns of a $400 million hit to revenue this quarter. Still, Jim Cramer said on CNBC’s “Squawk Box”:

I’m not saying buy Nvidia today. I’m saying don’t write off Nvidia. If you count Jensen out after this, you’re making a very big mistake. Jensen Huang is the best there is. I think $400 million maybe the worst.

The chipmaker is in touch with its customers in China to see if “alternative products” could satisfy their requirements. If not, it plans on requesting a “license” from the U.S. Department of Commerce.

It is yet to unravel, though, if the government will authorise such an exemption that will enable Nvidia to continue selling at least some of its high-end chips to select customers in China.

Bernstein lowers price target on Nvidia stock

Last month, Nvidia guided for $5.9 billion in sales for its third financial quarter versus the Street at $6.95 billion. With the new restrictions, though, it might even fail to hit that weaker-than-expected number.

Also on Thursday, Bernstein’s Stacy Rasgon trimmed his price objective on the semiconductor company to $180 but said:

“It’s not trivial, but it’s not earth shattering, devastating either. They’ll be looking to get licenses and try to supply alternative products. But it feels prudent to take the impacted China revenue out of our Nvidia numbers.”

The lowered target still represents about a 35% upside from here. So, the sell-off today might have created an opportunity to buy Nvidia stock that’s been cut in half this year.

The post U.S. restricts sales of high-end chips to China: sell Nvidia stock now? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Tele2 AB today announces a new partnership with security experts EBS to deliver a secure and managed IoT connectivity solution. Tele2 will support EBS...


    Anyone who has filled up the tank of their car this year will be aware of the rollercoaster ride that the price of oil...

    Latest News

    Sen. Patrick Leahy “was not feeling well” on Thursday and was admitted to the hospital overnight for observation, his office said in a statement....

    Latest News

    Joe Manchin is forcing Democrats into a brutal choice: Take a deal now to lower the costs of health care premiums and prescription drugs,...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023