A senior Nvidia executive said President Trump’s potential fees and export controls on his powerful computer chips remain a “unknown”-sending his shares sliding despite three-month profits better than expected.
Nvidia shares were more than 4% in the morning Thursday, while the investor digested a mixed view by the firm of CEO Jensen Huang in the fourth trimester profits report.
Wall Street remains concerned about macroeconomic factors while Trump increases pressure on China. Nvidia CFO Colleen Kress accepted uncertainty during a call to analysts.
“Tariffs, at this point, is a little unknown,” Kress said. “Next to an unknown until we find out what is the US government plan, like its time, is” where “and how much. So, at this time, we are waiting, but again, we will always follow export controls and/or fees in that way.”
While income and income came to expect the above, skeptics showed a slight stroke while Nvidia enhances the production of new Blackwell chips. Revenue increased 78% to $ 39.33 billion, but growth has slowed down by its permanent rhythm as Nvidia grows higher.
Nvidia envisioned sales of $ 43 billion in the current quarter – a number that came higher than consensus estimates, but it seemed to reject some analysts. Edward Jones analyst Logan Purk described the guidance as “slightly underlining”.
In a Thursday morning post on social truth, Trump said he would impose another 10% fee in China – in addition to the 10% fee he already faces for imports. Tariffs against Mexico and Canada will take effect on March 4.
Adding uncertainty, the president previously sailed a possible “25% and higher” fee in computer chips.
Nvidia fell alongside the index consisting of Nasdaq technology, which was reduced to about 200 points or 1% in early trading.
Nvidia is the main supplier of chips, with Openai supported by Microsoft and Elon Musk’s Xai among her customers.
Wedbush analyst Dan Iva said Nvidia’s results suggest that “the thesis of Ai’s revolution” remains strong “, despite market shouting. He repeated a view that Nvidia would hit a $ 4 trillion market cap this year.
“Are there any concerns about Trump’s fees, export controls and other macro factors? Of course there are,” Iva said in a note to customers.
“But our view is after all, the bark will be worse than biting with China’s export tariffs/controls and this is all a game of high stock poker to run a deal with China at the negotiation table somewhere in 2025,” Ives added.
Huang told analysts that the demand for Blackwell chips is “extraordinary” and anticipated great things ahead for the development of it.
“We are only at the beginning of the age of him … We will grow tightly in 2025,” he said.
Senior Trump administration officials have suggested that the country can strengthen export controls limit China’s entry into the best Nvidia chips, which are required to train and strengthen advanced chatbots.
Trade Secretary Howard Lutnick singled out Nvidia’s role in China’s rapid progress in him during his confirmation session last month – shortly after the Chinese firm Deepseek endlessly the technology sector claiming it had developed a powerful model for less than $ 6 million.
“Nvidia chips, for which they bought tone, and they found their surrounding streets, direct their deepseek pattern. It has to end,” Lutnick said.
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