On Thursday, Stifel analysts maintained their Buy rating on NVIDIA (NASDAQ:NVDA), with a price target of $180.00. This is in line with the broader Wall Street consensus, which remains optimistic about the $2.55 trillion semiconductor giant. NVIDIA continues to stand out with a perfect Piotroski Score of 9, indicating its solid financial health.

Impact of New U.S. Export Controls on NVIDIA

This affirmation comes after NVIDIA announced that the U.S. government has implemented new export controls. These require an indefinite license to export H20 processors to China, which includes Hong Kong, Macau, and countries in the D:5 category, as well as companies based or owned by entities in these regions. Due to these restrictions, NVIDIA expects to take a substantial $5.5 billion hit to its inventory.

How NVIDIA and AMD Are Affected by Export Restrictions

Analysts noted that the large inventory charge indicates that NVIDIA may lack confidence in securing the necessary export licenses or is concerned about the possibility of further regulations. In a similar move, AMD (NASDAQ:AMD) also reported an $800 million charge related to the new export controls. Both companies expect these charges to affect their revenue projections for the year, with a modest single-digit percentage reduction.

Stifel analysts maintain confidence in NVIDIA’s long-term growth prospects, even with the challenges brought on by these new restrictions. While short-term volatility remains a possibility, they believe the company’s overall growth trajectory is still strong and reliable. This situation underscores the shifting nature of global trade policies and the immediate effects they have on major tech companies like NVIDIA and AMD.

NVIDIA’s Financial Impact and Future Outlook

In other news, NVIDIA’s $5.5 billion inventory charge is linked to the U.S. export controls impacting the shipment of H20 datacenter GPUs to China. These AI chips are the only ones NVIDIA can legally sell to China, and the export restrictions have left Chinese companies uncertain about their future AI chip supply. Analysts from Stifel, TD Cowen, and UBS have all maintained their “Buy” ratings on NVIDIA, setting price targets of “$180,” “$140,” and “$185,” respectively. Stifel estimates that this charge could reduce NVIDIA’s projected annual revenue for fiscal year 2026 by “4.25-4.5%.”

TD Cowen praised NVIDIA’s leadership in AI and its robust product pipeline, while UBS noted that the licensing requirements could function as a de facto ban, potentially affecting NVIDIA’s financial outlook. However, they also suggested that this could be a strategic move by the company. NVIDIA’s CEO, Jensen Huang, recently visited Beijing, though the company has yet to comment publicly on the new restrictions.

Is Investing $2,000 in NVIDIA Stock a Smart Move?

ProPicks AI and highlights top stocks with strong potential for significant returns. Could NVIDIA be one of those standout opportunities? With the recent export control challenges, all eyes are on how NVIDIA navigates these changes. Given the company’s strong market position and future prospects, it’s definitely a stock to keep on your radar for the years ahead.