NVDA faces charge for exporting processors to China, but remains bullish with positive outlook

From Yahoo Finance: 2025-04-16 14:20:00

Nvidia will take a $5.5 billion charge to its inventory due to needing an “indefinite license” to export processors to China. Investment bank Stifel maintains a Buy rating on NVDA stock, with a positive long-term outlook and $180 price target, citing strong performance of Blackwell chips in Q4.

Stifel predicts the charge could result in a 4.5% drop in Nvidia’s annual revenue, raising concerns about license acquisition and potential regulatory hurdles. Despite NVDA’s potential, Stifel believes AI stocks offer greater returns in a shorter timeframe, highlighting a promising AI stock trading at a low multiple of earnings.

For more information on AI stocks, read about the best AI stocks to buy now and the top stocks to invest in according to billionaires. Disclosure: None. This article was originally published at Insider Monkey.

Read more: Investment Bank Remains Bullish on NVDA Despite Charge