Ross Gerber Blasts Trump For 'Destroying' Nvidia's China Business — Gene Munster Says 'Forget About The China Curbs' Because The Chip Giant's Core Business Is 'On Fire'

Nvidia Corporation’s NVDA blockbuster quarter has drawn reactions from top investors, with Ross Gerber slamming U.S. policy on China. At the same time, Deepwater Asset Management's Gene Munster has urged Wall Street to focus on the chipmaker's explosive AI growth.

What Happened: Nvidia reported first-quarter revenue of $44.1 billion, up 69% year-over-year and ahead of Wall Street's $43.2 billion estimate.

"Another impressive qtr from Nvidia despite [Donald] Trump basically destroying their China business for now," said Gerber, CEO of Gerber Kawasaki on X, formerly Twitter. "At some point maybe the U.S. will understand the advantages of having China being dependent on our technology."

Meanwhile, Munster downplayed the China hit, suggesting investors should zoom in on Nvidia's core business. “Forget the China curbs. $NVDA’s business is off the charts good,” he said on social media.

“[Nvidia’s] core business is on fire and is evidence that we’re still early in the AI infrastructure buildout,” he said on his Pressure Points show.

Munster stated that if the $2.5 billion revenue loss from China in the April quarter were excluded, Nvidia's year-over-year growth would have reached 79%. Similarly, adjusting for the expected $8 billion China hit in the July quarter would still imply 76% revenue growth, well above Wall Street's 60% forecast.

Why It's Important: On April 9, Nvidia was hit with an export ban affecting its H20 products bound for China. As a result, the company recorded a $4.5 billion charge in the first quarter tied to unsold H20 inventory and existing purchase commitments.

Before the new export rules took effect, H20-related sales for the quarter totaled $4.6 billion. Nvidia noted that, excluding the impact of this charge, its adjusted earnings per share for the quarter would have been 96 cents.

Previously, it was reported that Nvidia is preparing to introduce a much more affordable artificial intelligence chip for the Chinese market, with prices ranging from $6,500 to $8,000.

Earlier this month, Nvidia CEO Jensen Huang reportedly told U.S. lawmakers that current export limits on AI chips could be giving Huawei Technologies an advantage, potentially strengthening the Chinese company's position in the global AI competition.

Price Action: Nvidia shares rose 4.89% in after-hours trading, reaching $141.40, after slipping 0.51% during Wednesday's regular session, according to Benzinga Pro.

Nvidia also holds a strong growth score of 98.75% on Benzinga Edge Stock Rankings — click here to compare it with other leading tech stocks.

Photo Courtesy: Hepha1st0s On Shutterstock.com

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