What's Going On With Nvidia Stock?
NVIDIA shares fell 3.3% to $101.09 amid new U.S. export restrictions on AI chips to China, impacting investor confidence. The U.S. government imposed licensing rules affecting sales to China and other regions, leading Nvidia to announce a $5.5 billion inventory charge. Analysts predict earnings could drop by 8%-10% in 2025 for both Nvidia and AMD, which reported an $800 million charge. Despite strong AI demand in China, domestic firms may shift to local alternatives. Nvidia's stock has declined about 15% in the past month due to regulatory pressures.
NVIDIA Corp NVDA shares are trading lower by 3.3% to $101.09 during Thursday’s session, deepening its recent slide.
What To Know: The U.S. government imposed new licensing rules restricting sales of Nvidia's H20 and AMD's MI308 chips to China, Hong Kong, Macau and several other countries.
In response, Nvidia announced a $5.5 billion inventory charge, signaling it may be unable to ship these chips to key customers like Alibaba and Tencent.
Advanced Micro Devices Inc AMD this week meanwhile reported an $800 million charge, with estimated full-year revenue losses of up to $1.8 billion. JPMorgan analyst Harlan Sur projects these restrictions could reduce both companies’ earnings by 8%–10% in 2025.
Nvidia CEO Jensen Huang is also in Beijing Wednesday meeting with Chinese trade officials, emphasizing the company's desire to maintain ties with the Chinese market. While AI demand in China remains strong, domestic firms are now expected to accelerate adoption of homegrown alternatives like Huawei's Ascend chips.
Though analysts like Bank of America's Vivek Arya call the situation "manageable," Nvidia shares have dropped roughly 15% in the past month, as growing regulatory pressure casts a shadow over U.S. chipmakers' outlook.
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How To Buy NVDA Stock
By now you're likely curious about how to participate in the market for NVIDIA – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of NVIDIA, which is trading at $100.25 as of publishing time, $100 would buy you 1.0 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, NVDA has a 52-week high of $153.13 and a 52-week low of $75.61.