Nvidia (NASDAQ:NVDA) shares extended their losses Thursday, shedding nearly 3%, following a 7% drop the previous session after the U.S. imposed fresh restrictions on AI chip exports to China. The two-day selloff has erased around $266 billion in market capitalization, pulling Nvidia's valuation down to about $2.47 trillion.
Nvidia shares will rise again after Jensen's visit as the visit is strategic and that it determines the start of super growth in China.
The U.S. government's move, targeting Nvidia's H20 chips, blocks sales to Chinese firms such as ByteDance and Alibaba (NYSE:BABA). As a result, Nvidia now expects a $5.5 billion hit to first-quarter revenue due to halted deliveries.
UBS Group (NYSE:UBS) has revised its outlook, cutting its price target to $180 from $185. The firm slashed its gross margin forecast to 5859% for the April quarter, citing elevated tariff costs. UBS projects a revenue shortfall of US$700 million this quarter and up to US$8 billion more through the next two quarters.
Nvidia is also delaying chip upgrades, opting to stick with its current Bianca design, citing issues with a newer Cordelia version.
Shares of the chip company were down more than 10% over two days, placing the stock among the S&P 500's worst performers for the week.
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