HSBC Research reports that the U.S. government's new licensing requirements for exporting H20 chips to China pose uncertainties for NVIDIA (NVDA, Financial). The company's management anticipates recording a $5.5 billion charge related to inventory, procurement commitments, and reserves for H20 products in the first quarter of the fiscal year 2026.
In the worst-case scenario, NVIDIA may not be able to register any revenue from H20 chips in addition to the $5.5 billion charge. Nevertheless, HSBC Research believes that NVIDIA could offset the potential loss by ramping up shipments of its Blackwell and Hopper chips. Thus, they maintain their revenue forecast of $43.9 billion for the first fiscal quarter and keep the stock's rating at "hold" with a target price of $120.
