Nvidia Faces Revenue Hit, Stock Forecasts Cut Amid Export Restrictions

Nvidia's stock has come under significant pressure as multiple analysts have lowered their forecasts, citing tightening U.S. export restrictions on AI chips to China and a projected $5.5 billion revenue hit. These new export rules have not only impacted Nvidia's H20 chips but have also led to sharp declines in semiconductor indexes and broader U.S. markets, with the company’s shares falling as much as 7% and down 20% year-to-date. Federal Reserve Chair Jerome Powell's warnings about a slowing U.S. economy and persistent inflation, partially linked to trade policies and tariffs, have deepened investor concerns. Other industry players like Dutch chipmaker ASML have also reported increased uncertainty due to the ongoing U.S.-China tariff disputes. While Morgan Stanley and Wolfe Research have trimmed their expectations, Bank of America remains bullish, emphasizing Nvidia’s leading role in AI infrastructure. Overall, Nvidia's once-unquestioned dominance is now challenged by external headwinds, shifting analyst sentiment, and heightened volatility in global markets.