By Adam Clark
Nvidia stock was falling on Monday as investors assess Big Tech spending on its processors and balance that against potential restrictions on the chip maker's exports.
Nvidia shares down 1.13% at $113.1 in premarket trading. The stock rose 2.6% on Friday.
Nvidia stock rose more than 5% over the past five trading sessions and 17% in the past month, helped by technology companies Microsoft, Meta Platforms and Amazon.com all repeating their intention to invest heavily in artificial-intelligence infrastructure, which includes Nvidia's chips.
However, Nvidia could be facing a 20% reduction in the long-term $500 billion total addressable market for its hardware from U.S. restrictions on its exports, according to BofA Securities analyst Vivek Arya.
"China is about half of this, based on China's direct contribution to global cloud capex. The other 10 [percentage] points is variable and will depend on how strictly the U.S. administration implements AI diffusion rules," Arya wrote in a research note.
Arya kept a Buy rating and $150 target price on Nvidia stock.
Among other chip makers, Advanced Micro Devices was down 0.76% and Broadcom was down 1.3% in premarket trading.
Write to Adam Clark at adam.clark@barrons.com
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May 05, 2025 04:43 ET (08:43 GMT)
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