Shares of Nvidia Corporation (NASDAQ: NVDA) fell 8.5% during the shortened trading week of April 14–18, closing at $101.49 per share on Thursday. The steep decline came as the company disclosed major charges related to U.S. export restrictions and a strategic update on domestic chip manufacturing. It was a volatile stretch for one of the stock market’s leading AI names—offering both long-term promise and short-term pain.
📉 A Rough Week in Tech
Nvidia’s stock drop outpaced broader indexes, with the S&P 500 down 1.5% and the Nasdaq Composite off 2.6% for the week. Rival Advanced Micro Devices (AMD) also fell, losing 6.3%, as investors braced for potential fallout from tighter U.S. trade restrictions.
📅 Key Events That Moved Nvidia Stock
✅ Tuesday, April 15 – Domestic Manufacturing News Lifts Sentiment (Temporarily)
On Tuesday, Nvidia gained 1.3% following a positive update on U.S. chip production plans. In a blog post released Monday, the company said it would begin producing its AI supercomputers entirely in the U.S. within four years, with up to $500 billion in AI infrastructure expected to be developed domestically.
Highlights of the plan:
- New Blackwell AI chips are now in production at TSMC’s Arizona facility
- Packaging and testing operations will be handled by Amkor and SPIL, also in the U.S.
- Two new supercomputer manufacturing plants are underway in Houston and Dallas, Texas, via partnerships with Foxconn and Wistron
The strategic shift reflects growing efforts to localize supply chains and reduce reliance on overseas facilities—especially in light of rising geopolitical tensions and regulatory scrutiny.
❌ Wednesday, April 16 – Export Control Shock Hits Hard
The optimism quickly faded. Nvidia disclosed in an SEC filing late Tuesday that it expects to take up to $5.5 billion in charges related to inventory, purchase commitments, and reserves tied to its H20 AI chips, which were designed for the Chinese market.
The blow stems from the U.S. government’s expanded export restrictions, which now prohibit shipping the H20 chip to China and certain other countries without a license—a requirement analysts widely view as a de facto ban.
Key details:
- The H20 was previously designed to comply with earlier restrictions
- The latest expansion follows rounds in August 2022 and October 2023
- The new rule was communicated to Nvidia on April 9, with confirmation of long-term enforcement received on April 14
With Chinese demand now potentially off the table, Nvidia is left with a stockpile of unsellable chips and unfulfilled contracts, forcing it to write down a significant portion of its Q1 earnings.
📊 What the Numbers Say
Nvidia had projected $43 billion in revenue for fiscal Q1 (ending April 27), representing:
- +65% YoY growth
- +9.4% sequential growth
But factoring in the $5.5 billion charge, adjusted revenue could fall to around $38.5 billion, bringing growth down to roughly 48% YoY—still impressive, but notably short of expectations.
The company’s data center division, which includes the H20 chip, now accounts for over 90% of revenue, making these export controls especially painful. Profitability is also expected to take a more significant hit, though Nvidia hasn’t released earnings guidance beyond the top line.
📈 Still a Long-Term Leader in AI
Despite this setback, analysts and long-term investors continue to see substantial upside in Nvidia’s core AI business. The company’s dominance in GPU technology, especially for training and inference in generative AI, remains unparalleled.
Moreover, Nvidia is well-positioned to lead in next-gen AI segments like:
- Agentic AI (autonomous decision-making)
- Physical AI (robotics, self-driving vehicles)
The company’s future hinges on these high-growth areas, along with U.S.-based production that could help sidestep future export conflicts.
🧠 Investor Takeaway
Nvidia’s H20 write-down is a clear near-term headwind, especially as China was a major buyer. But the broader AI megatrend is still intact, and the company’s rapid moves to restructure supply chains and scale domestic operationsposition it well for future growth.
Nvidia stock is currently down 32% from its all-time high of $149.43 (January 6, 2025), but remains up nearly 20% year over year, significantly outperforming the S&P 500’s 6.9% gain over the same period.
