April 18 - Nvidia (NVDA, Financial) shares extended their losses Thursday, shedding nearly 3%, following a 7% drop the previous session after the U.S. imposed fresh restrictions on AI chip exports to China. The two-day selloff has erased around $266 billion in market capitalization, pulling Nvidia's valuation down to about $2.47 trillion.
The U.S. government's move, targeting Nvidia's H20 chips, blocks sales to Chinese firms such as ByteDance and Alibaba (BABA, Financial). As a result, Nvidia now expects a $5.5 billion hit to first-quarter revenue due to halted deliveries.
UBS Group (UBS, Financial) has revised its outlook, cutting its price target to $180 from $185. The firm slashed its gross margin forecast to 58–59% for the April quarter, citing elevated tariff costs. UBS projects a revenue shortfall of US$700 million this quarter and up to US$8 billion more through the next two quarters.
Nvidia is also delaying chip upgrades, opting to stick with its current “Bianca” design, citing issues with a newer “Cordelia” version.
Shares of the chip company were down more than 10% over two days, placing the stock among the S&P 500's worst performers for the week.
