UBS’s research report noted that NVIDIA (NVDA.US) was informed by the U.S. government that it requires a license to export its H20 chips to China and other countries, which, based on discussions obtained by the broker, effectively amounts to an export ban.

NVIDIA set aside USD5.5 billion to account for this. The report wrote that completely excluding the H20 chip business would wreak a USD0.2 EPS impact. However, UBS suggested a potential silver lining if NVIDIA commits to investing USD500 billion in U.S. AI infrastructure over the next four years in exchange for the U.S. government repealing the AI Diffusion Rule.

UBS has not adjusted NVIDIA’s earnings forecasts, maintaining a Buy rating with a target price of USD185.
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AAStocks Financial News
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