{"id":2106049,"date":"2023-11-22T16:36:01","date_gmt":"2023-11-22T21:36:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-shares-drop-as-china-worries-overshadow-stellar-forecast\/"},"modified":"2023-11-22T16:37:59","modified_gmt":"2023-11-22T21:37:59","slug":"nvidia-shares-drop-as-china-worries-overshadow-stellar-forecast","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-shares-drop-as-china-worries-overshadow-stellar-forecast\/","title":{"rendered":"Nvidia&#8217;s stock falls due to China concerns despite strong outlook"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnvidia-shares-drop-as-china-worries-overshadow-stellar-forecast%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2106049&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<h2>Stock Market News<\/h2>\n<p>4:19 \u2064PM UTC \u2013 November 22, 2023<\/p>\n<p>(Reuters) \u2013 Nvidia \u2064(NVDA.O) shares fell nearly 4% \u200bon Wednesday on fears that widening U.S. chip curbs would sap\u200c growth in\u200d China, its third largest market, and curtail the AI-driven boom in its business.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">\n<script>\ngoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });\n<\/script>\n<\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The company was set\u200c to erase more than $40 billion in market capitalization if losses hold, based\u2063 on its current share price of $482.20.<\/p>\n<p>Nvidia, which has \u200dbeen at\u2063 the forefront of artificial intelligence developments with its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-shares-drop-as-china-worries-overshadow-stellar-forecast\/\" title=\"Nvidia's stock falls due to China concerns despite strong outlook\">tailor-made graphics processing units<\/a>, said its China business will take a\u2063 hit from \u200btighter export controls.<\/p>\n<p>Still, it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/accenture-forecasts-revenue-below-estimates-on-it-spending-cut-higher-dollar\/\" title=\"Accenture forecasts revenue below estimates on IT spending cut, higher dollar\">forecast current-quarter revenue<\/a> of $20 billion, plus or minus 2%, beating \u2064analysts\u2019 average\u2063 estimate by more \u2063than $2 billion, according to \u200cLSEG data.<\/p>\n<p>China contributed more than a fifth of its total revenue\u2063 in \u2062the quarter\u2064 ended Oct. 29.<\/p>\n<p>\u201cThis disconnect between stellar earnings and an uncertain future in\u200c China is causing investor concern,\u201d said\u200c Scott Acheychek, CEO of REX Shares, which offers a fund linked to Nvidia shares.<\/p>\n<p>Nvidia has \u200dbeen one of the biggest beneficiaries \u200bof a rally \u2064in \u200bAI-linked\u200d stocks, with\u200c its\u200c shares gaining\u200d 229.8% compared to tech-heavy\u2063 Nasdaq\u2019s (.IXIC) \u206436.6% rise so far \u2064this year.<\/p>\n<p>\u201cNvidia\u2019s shares went into the results \u2018priced to perfection\u2019\u2026.compounded by a run-up\u2062 to record highs going into the release,\u201d said Capital.com analyst Kyle Rodda.<\/p>\n<p>\u201cAs\u200d a\u2063 result, despite fantastic\u2063 financial performance and an even \u200cbetter outlook than analysts\u2062 had been expecting, any bad news was bound \u200dto undermine sentiment.\u201d<\/p>\n<p>At least seven \u2064brokerages raised their target price for the \u200cstock \u200dwith the median now at $625, more than\u200d $125 above its last closing price, signaling confidence that the business \u2064would grow as businesses\u2062 adopt AI.<\/p>\n<p>\u201cLooking further out, NVDA \u2063continues to expect Data Center segment growth in 2025 and has plans to \u200dincrease \u200csupply on\u200b a \u2063quarterly basis,\u201d brokerage Stifel \u2063said in note.<\/p>\n<p><sub>Reporting by Arsheeya Bajwa and Chavi Mehta in Bengaluru;\u200d Editing by Arun\u200d Koyyur<\/sub><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\">Share this post!<\/p>\n<\/div>\n<div class=\"entry-content\">\n<h3>Other News:<\/h3>\n<ul>\n<li>Texas is\u200c set to pass a new law that would make it a state crime to cross its\u2064 border illegally.<\/li>\n<li>A\u2064 Northern California man faces sentencing for beheading his\u2064 ex-girlfriend with \u200ba Samurai\u200c sword.<\/li>\n<li>The District Of Columbia attempts\u2062 to \u200ccurb sharp increases of homicides and car thefts experienced by residents of the city.<\/li>\n<li>Long Island Representative Anthony D\u2019Esposito\u200d introduces a resolution\u2064 to formally\u2063 condemn\u2063 the widespread use of an anti-Semitic slogan.<\/li>\n<li>Sam\u200d Altman\u2019s \u200dreturn as CEO of OpenAI \u2062caps a frenzied\u2064 discussion \u200babout the future of the startup at\u200c the\u200b center of an artificial intelligence boom.<\/li>\n<li>Social media company X\u2064 CEO Linda Yaccarino told employees \u200dthat \u201cdata will tell the \u2062real story\u201d about \u2062its efforts to battle antisemitism.<\/li>\n<li>Microsoft emerged on Monday as the \u2064big\u200d winner of the upheaval \u2064at OpenAI, hiring ousted CEO Sam Altman and other key staff of the startup.<\/li>\n<\/ul>\n<\/div>\n<p> <\/p>\n<h2> What is the potential impact of \u200bthe export controls on Nvidia&#8217;s ability to do business in China and its revenue from this market?<\/h2>\n<p><span>  The earnings announcement, any negative news was likely to result in a sell-off,\u201d said Neil Campling, analyst at investment bank Mirabaud Securities.<\/p>\n<p>The concerns about Nvidia&#8217;s\u200b performance in China come as the U.S. government tightens restrictions on the export of technology\u200b to certain Chinese companies, including those \u2063involved in the production of semiconductors, due to national security\u2064 concerns. These restrictions could have a significant impact\u2063 on Nvidia&#8217;s ability to do\u200b business in China, as the country has become \u200ca major market for its products.<\/p>\n<p>Nvidia&#8217;s \u2064graphics processing units (GPUs) are widely used in data centers and gaming consoles, but they also play a crucial role in\u200d artificial intelligence (AI) applications. As China invests heavily in AI technology, the demand for Nvidia&#8217;s GPUs has been strong. \u200cHowever, the\u2064 new export controls could limit Nvidia&#8217;s ability to supply its products to \u2063Chinese companies, thereby affecting\u2063 its revenue from this important\u200c market.<\/p>\n<p>Despite the \u200cconcerns, Nvidia remains optimistic about \u200bits future performance. The company has forecasted revenue \u2064of \u200c$20 \u2064billion for \u200bthe current quarter, \u200bsurpassing analysts&#8217; expectations. This positive\u200d outlook \u200dis\u2062 supported by the continued growth in demand for AI-related technologies and\u200c Nvidia&#8217;s\u200d strong position in\u2063 the market.<\/p>\n<p>However, investors are cautious about the potential impact of the export controls on Nvidia&#8217;s business in China. The uncertainty surrounding the situation has led to a sell-off in the company&#8217;s shares, causing\u2062 a decline of \u2063nearly 4% in its stock price. If these losses hold, Nvidia could lose more than $40 billion in market \u200dcapitalization.<\/p>\n<p>Scott Acheychek, CEO of REX Shares, believes that the uncertainty in China \u2062is causing investor concern. Despite Nvidia&#8217;s impressive earnings, the company&#8217;s future in China remains uncertain, and this is reflected in the market reaction.<\/p>\n<p>Nvidia has been one of the top-performing stocks in the AI sector, with \u2063its shares gaining \u200b229.8% compared to the Nasdaq&#8217;s 36.6% rise this year. However, \u200dthe recent sell-off shows that\u200d investors are cautious about the potential impact of the export controls on \u200dthe company&#8217;s performance.<\/p>\n<p>It remains \u200bto\u200d be seen how Nvidia will navigate the challenges posed\u200d by the tightening U.S. chip curbs \u2064and the\u2063 uncertain business environment in China. \u2062However, the company&#8217;s strong \u200dposition in the AI market\u200c and\u200c its positive revenue forecast\u200b provide some optimism for its future performance.<\/p>\n<p>Investors \u200dwill be closely\u200d watching Nvidia&#8217;s actions and statements in the coming months as they assess the potential risks and opportunities associated \u2064with the company&#8217;s business in China. The outcome of these developments could have a significant impact on Nvidia&#8217;s stock performance and the broader AI \u2062industry as a whole.<\/p>\n<p>As the situation continues to evolve,\u2062 it is crucial \u200cfor investors to stay informed and carefully analyze the potential risks and\u2064 rewards \u2063of investing in companies like \u2064Nvidia. Keeping a close eye on market trends and developments will be essential for making well-informed investment decisions in the \u200drapidly changing\u200c world of AI and technology.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia (NVDA.O) shares dropped by almost 4% on Wednesday due to concerns over expanding U.S. chip restrictions impacting its third largest market, China, and hindering the growth of its AI-focused business. This decline in share value was expected to wipe out over $40 billion from Nvidia&#8217;s market capitalization<\/p>\n","protected":false},"author":1911,"featured_media":2106050,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2106049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2106049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2106049"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2106049\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2106050"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2106049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2106049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2106049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}