Nvidia Hit by $266 Billion Wipeout After U.S. Bans AI Chip Sales to China

3 weeks ago 22

Nauman khan

Fri, Apr 18, 2025, 5:19 AM 1 min read

April 18 - Nvidia (NASDAQ:NVDA) shares extended their losses Thursday, shedding astir 3%, pursuing a 7% driblet the erstwhile league aft the U.S. imposed caller restrictions connected AI spot exports to China. The two-day selloff has erased astir $266 cardinal successful marketplace capitalization, pulling Nvidia's valuation down to astir $2.47 trillion.

Warning! GuruFocus has detected 3 Warning Signs with NVDA.

The U.S. government's move, targeting Nvidia's H20 chips, blocks income to Chinese firms specified arsenic ByteDance and Alibaba (NYSE:BABA). As a result, Nvidia present expects a $5.5 cardinal deed to first-quarter gross owed to halted deliveries.

UBS Group (NYSE:UBS) has revised its outlook, cutting its terms people to $180 from $185. The steadfast slashed its gross borderline forecast to 5859% for the April quarter, citing elevated tariff costs. UBS projects a gross shortfall of US$700 cardinal this 4th and up to US$8 cardinal much done the adjacent 2 quarters.

Nvidia is besides delaying spot upgrades, opting to instrumentality with its existent Bianca design, citing issues with a newer Cordelia version.

Shares of the spot institution were down much than 10% implicit 2 days, placing the banal among the S&P 500's worst performers for the week.

This nonfiction archetypal appeared connected GuruFocus.