Nvidia is set to release its earnings after the US stock market closes on May 28th.

According to American media MarketWatch, Bank of America expects Nvidia's performance from February to April to "slightly" exceed expectations, and estimates that the $5.5 billion write-down caused by the H20 embargo will reduce the gross margin to around 58%, compared to an expected gross margin of 71% before the US revised its export control rules for China.

Nevertheless, Bank of America analyst Vivek Arya still considers Nvidia's stock "the top choice in this field due to its unique influence in global AI deployment, and sales recovery in the Chinese market may be achieved through redesigned/compliant new products later this year."

Arya stated that investors are waiting for Nvidia to demonstrate confidence in its gross margin returning to the mid-70s in the second half of the year, which will also reflect the capacity increase of its Blackwell platform.

In the next 5-7 months, FactSet analysts estimate Nvidia's revenue at $46 billion (approximately RMB 330 billion). Bank of America, citing the implementation of the H20 embargo, has downgraded its own forecast from $48 billion (approximately RMB 344.3 billion) to $46.4 billion (approximately RMB 332.8 billion).

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On May 24th, Reuters cited relevant sources, stating that Nvidia plans to launch a new AI chip group targeting the Chinese market, which will be significantly cheaper than the recently restricted H20 model, with production expected to begin as early as June. This GPU or graphics processor will belong to Nvidia's latest generation Blackwell architecture AI chip series, with pricing expected to range between $6,500 and $8,000 (approximately RMB 46,626 - 57,386).

In addition, sources revealed that Nvidia is also developing another Blackwell architecture chip for China, which is expected to start production as early as September, but the specific parameters of this version have not been confirmed yet.

In April this year, the Trump administration announced a ban on Nvidia selling H20 chips to China, causing the company to write down assets worth $5.5 billion (approximately RMB 39.632 billion). Bloomberg Intelligence analyst said in a report that Nvidia's write-down means the company may lose revenue of $14 billion to $18 billion (approximately RMB 100.881 billion - 225.293 billion) this year.

Nvidia CEO Jensen Huang stated on May 19th during an interview with Stratechery: "The additional embargo on Nvidia H20 is very painful. We lost $15 billion in revenue, and perhaps $3 billion in tax revenue for the US."

At the Taipei Computer Show, Huang criticized: The US export control measures for AI chips to China are "a failure." He believes that trying to stop other countries from obtaining US technology by restricting the spread of AI technology is fundamentally wrong. "The right approach should be to accelerate the spread of US technology globally before it's too late. If the goal is to keep the US ahead, restricting the spread of AI technology is counterproductive."

This article is an exclusive contribution by Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7508988040069562914/

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