Nvidia stock fell 8.5% due to export controls and charges, impacting Q1 results.
From Nasdaq: 2025-04-20 15:00:00
Shares of Nvidia (NASDAQ: NVDA) fell 8.5% last week to $101.49 per share, outperforming the S&P 500 and Nasdaq Composite indices. On Tuesday, the stock rose 1.3% on U.S. investment news. However, on Wednesday, it dropped 6.9% due to expanding export controls, leading to charges of up to $5.5 billion in its fiscal first-quarter results.
The U.S. government imposed restrictions on Nvidia’s export of the H20 chip to China and other countries, leading to inventory charges. This marks the second expansion round of export controls on data center chips capable of handling advanced AI workloads. Nvidia’s financial results for the first quarter of fiscal year 2026 are expected to be impacted significantly. Nvidia expects a 48% year-over-year revenue growth in fiscal Q1 2026, despite $5.5 billion in charges. While this will impact net income, the data center platform remains profitable. The company’s long-term prospects are strong, with a dominant position in AI chips and growth opportunities in agentic AI and physical AI.
H20 charges will likely hurt Nvidia’s fiscal Q1 results and future quarters, especially in the Chinese data center market. Despite this, the company remains a solid long-term investment due to its market leadership in GPUs for AI chips and growth potential in emerging AI sectors.
Investors should consider Nvidia’s stock performance, with a 32% decrease from its all-time high but still up 19.9% from a year ago. The Motley Fool Stock Advisor team does not currently recommend Nvidia, highlighting other stocks with potential for significant returns. Stock Advisor has a history of outperforming the S&P 500. 1. The stock market experienced a sharp drop today, with the Dow Jones Industrial Average falling 500 points. This decline was attributed to concerns over rising inflation and increasing interest rates.
2. The unemployment rate has dropped to 4.2%, the lowest it has been in over a decade. This is a positive indicator of a strong job market and a growing economy.
3. A new study has found that 70% of Americans believe that climate change is a major threat to the planet. This growing concern is leading to calls for more action to address environmental issues.
Read more at Nasdaq: Nvidia Stock: The Week of April 14-18 in Review