Nvidia stock slides as CFO raises worries over ‘unknowns' on Trump tariffs, export controls

Core Viewpoint - Nvidia's stock experienced a decline due to uncertainties surrounding potential tariffs and export controls from the Trump administration, despite reporting better-than-expected quarterly profits [1][2]. Financial Performance - Nvidia reported a revenue increase of 78% to $39.33 billion, surpassing expectations, although there was a slight decrease in margins as production of new Blackwell AI chips ramped up [3]. - The company projected sales of $43 billion for the current quarter, which was higher than consensus estimates but still perceived as "slightly underwhelming" by some analysts [4]. Market Sentiment - Wall Street is anxious about macroeconomic factors, particularly as President Trump increases pressure on China, which has contributed to Nvidia's stock volatility [2][5]. - Nvidia shares fell alongside the Nasdaq Composite Index, which was down about 1% in early trading [5]. Demand and Future Outlook - Nvidia's CEO Jensen Huang highlighted strong demand for the new Blackwell chips, predicting significant growth in AI development [3][7]. - Analyst Dan Ives expressed confidence in Nvidia's position, suggesting that the "AI revolution thesis" remains robust despite market uncertainties, and projected that Nvidia could reach a $4 trillion market cap this year [6]. Regulatory Environment - The potential for new tariffs, including a proposed 10% tariff on China and a possible 25% or higher tariff on computer chips, adds to the uncertainty surrounding Nvidia's operations [4][5]. - Top officials in the Trump administration have indicated a desire to tighten export controls on Nvidia's chips, which are crucial for AI advancements in China [10][11].