Customers stockpiled Nvidia’s AI chips before new U.S. curbs on China exports took effect, so exceeding quarterly sales expectations; but, the same restrictions will cut off $8 billion in sales from the company’s current quarter, thus the company will have to present a forecast below Wall Street estimates on Wednesday.
As investors absorbed news that the hit in the current fiscal second quarter was not as large as expected, shares of the most valuable semiconductor company in the world nevertheless climbed 5% in extended trading. Nvidia also highlighted demand for its new Blackwell processors from customers including Microsoft. Comparatively to 2024 when the shares almost tripled in value, the stock is very flat so far this year. Trade constraints on what Nvidia may offer currently affect its business; the market for artificial intelligence data centers is also developing.
