Nvidia warned it will record a $5.5 billion quarterly charge linked to exporting H20 graphics processing units to China, as well as other destinations, leading some analysts to trim their outlook on the chipmaker. Bank of America and Piper Sandler were among the shops that lowered their price targets on Nvidia following the company’s announcement. In a regulatory filing, Nvidia disclosed that the the federal government told Nvidia it would need a license to export the chips to China and other countries. The news sent Nvidia shares tumbling more than 4%, pressuring other semiconductor names as well. Major tech stocks such as Meta Platforms and Alphabet also pulled back. But while some analysts trimmed their price targets, many maintained their buy-equivalent ratings on the stock. Here’s what some of the biggest firms are saying in response to the announcement: Bank of America: buy rating, price target reduced to $160 from $200 Analyst Vivek Arya’s updated target reflects more than 42% upside from Tuesday’s close. The analyst also estimates a “manageable” impact of 5% to 8% on sales and a 6% to 10% EPS impact as a result of the H20 charge. “We continue to find NVDA stock compelling, trading
