Nvidia (NASDAQ:NVDA) announced on Tuesday that, following a directive from the Biden Administration, there’s an immediate halt on sales of its AI-focused chips to China. In an official 8-K filing, the tech giant clarified that new export controls target products boasting a “total processing performance” of 4800 or more, such as their A100, A800, H100, H800, and L40S products. Contrary to prior plans, where licensing requirements would kick in after 30 days, these rules now take effect straight away.
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There was buzz among Wall Street circles that Nvidia’s recently released L4 and L40S GPUs might dodge these restrictions. Regardless of this abrupt change in export control timing, Nvidia remains optimistic, indicating that it doesn’t foresee any significant near-term blows to its financial performance.
What is the Prediction for Nvidia Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $645.53 per share implies 50% upside potential.
