{"id":4704,"date":"2025-05-29T07:16:56","date_gmt":"2025-05-29T07:16:56","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=4704"},"modified":"2025-05-29T07:16:56","modified_gmt":"2025-05-29T07:16:56","slug":"nvidia-shares-up-after-export-curbs-to-china-cause-smaller-sales-dip","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/nvidia-shares-up-after-export-curbs-to-china-cause-smaller-sales-dip\/","title":{"rendered":"Nvidia Shares Up After Export Curbs to China Cause Smaller Sales Dip"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Nvidia has surpassed Wall Street expectations for its first fiscal quarter, largely due to accelerated orders from Chinese firms ahead of new U.S. export bans.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the company cautioned that these same restrictions will reduce projected second-quarter revenue by $8 billion, resulting in guidance that came in below analysts\u2019 forecasts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shares climbed 5% after the announcement, driven by better-than-expected first-quarter results and continued optimism around <\/span><a href=\"https:\/\/www.nvidia.com\/en-us\/data-center\/technologies\/blackwell-architecture\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Nvidia\u2019s new Blackwell chips,<\/span><\/a><span style=\"font-weight: 400;\"> especially among major tech firms like Microsoft.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the company\u2019s stock remains mostly unchanged in 2025, this contrasts with the significant surge it experienced in 2024. Nvidia now contends with tighter export rules and a maturing AI infrastructure market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During an earnings call, CEO Jensen Huang voiced concern over growing <\/span><a href=\"https:\/\/prepsaret.com\/news\/china-signals-openness-to-trade-talks-with-u-s-amid-tariff-tensions\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">U.S.-China tensions.<\/span><\/a><span style=\"font-weight: 400;\"> He highlighted how Nvidia risks losing access to China\u2019s substantial AI ecosystem. \u201cPresident Trump wants America to win.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And he also realizes that we&#8217;re not the only country in the race,\u201d Huang stated, applauding Trump\u2019s decision to scrap a rule that would have regulated international AI chip distribution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Huang confirmed that the company can no longer customize its Hopper chips for China but declined to provide details on whether Blackwell variants would follow suit. Reports suggest that Nvidia is working on a China-compatible version of Blackwell.<\/span><\/p>\n<p><b>Related story: <\/b><a href=\"https:\/\/prepsaret.com\/news\/nvidia-unveils-cost-effective-ai-chip-for-china-amid-u-s-export-restrictions\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Nvidia Unveils Cost-Effective AI Chip for China Amid U.S. Export Restrictions<\/span><\/a><\/p>\n<h2 style=\"text-align: center;\"><b>Middle East Expansion Offers Glimmers of Hope<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">While restrictions are expected to impact short-term revenue, Nvidia has recently secured agreements in the Middle East, including a large-scale data center project in the UAE and additional developments in Saudi Arabia and Taiwan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These ventures may provide long-term revenue opportunities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CFO Colette Kress emphasized future prospects, noting \u201cprojects requiring tens of gigawatts of Nvidia AI infrastructure in the not-too-distant future.\u201d Nevertheless, she confirmed a decline in China-based data center income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The export limits on Nvidia\u2019s H20 chips\u2014its only legal option for Chinese buyers\u2014have already triggered a $5.5 billion charge disclosed in April. The actual Q1 impact was about $1 billion lower due to material reuse.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite losing $2.5 billion in H20 sales in Q1, the chip still generated $4.6 billion in revenue, accounting for 12.5% of total sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to D.A. Davidson\u2019s Gil Luria, early bulk purchasing by Chinese firms helped lift first-quarter numbers. However, concern lingers over future demand due to geopolitical uncertainty and possible trade tariffs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nvidia reported adjusted Q1 earnings of 81 cents per share\u2014or 96 cents excluding charges\u2014slightly ahead of analyst estimates. It forecasts $45 billion in Q2 revenue, slightly under the $45.9 billion analysts had anticipated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Analyst Jacob Bourne summarized the situation: \u201cThis doesn&#8217;t signal an end to Nvidia&#8217;s dominance, but highlights that sustaining it will require navigating an increasingly complex landscape of geopolitical, competitive, and economic challenges.\u201d<\/span><\/p>\n<p><b>Read next:<\/b> <a href=\"https:\/\/prepsaret.com\/comptia\/cybersecurity-news\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Cybersecurity News<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia has surpassed Wall Street expectations for its first fiscal quarter, largely due to accelerated orders from Chinese firms ahead of new U.S. export bans.\u00a0 However, the company cautioned that these same restrictions will reduce projected second-quarter revenue by $8 billion, resulting in guidance that came in below analysts\u2019 forecasts. Shares climbed 5% after the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":4711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[330],"tags":[],"class_list":["post-4704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nvidia Shares Up After Export Curbs to China Cause Smaller Sales Dip<\/title>\n<meta name=\"description\" content=\"Nvidia stock rises as China export curbs hit sales less than expected, easing investor fears over AI chip demand.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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