From Yahoo Finance: 2025-05-27 06:12:00

Nvidia investors await earnings report to see impact of U.S. chip curbs on China, expecting $5.5 billion in charges. CEO says company walked away from $15 billion in sales in China last year. Analysts question if Nvidia can offset losses and grow sales. Stock down 2% this year.

First-quarter revenue expected to surge 66.2% to $43.28 billion. Analysts estimate $1 billion sales impact from recent restrictions. Lost revenue for the year could be as high as $4.5 billion per quarter. Gross margin expected to drop over 11 percentage points.

CEO Huang criticizes U.S. semiconductor curbs on China, calling them a failure. Washington to modify export curb, opening new growth regions like the Middle East. Nvidia to sell AI chips to Saudi Arabia as part of trade deals. Confidence in AI investment from cloud providers remains strong.

Investors cautious ahead of earnings report, not expecting blowout beats. Nvidia beat revenue estimates by 4.9% on average last year. Expectations for this quarter are not high. Company faces uncertainty with China business losses and new growth opportunities in other regions.

Read more: Nvidia earnings to reveal hit from US export curbs on China