Nvidia's Rollercoaster: Blue Whale Capital Bets Big Amid Export Hurdles and Market Turmoil

As of last week, Nvidia (NVDA) saw a decline of 2.87%, marking two consecutive days of losses, with a total drop of 9.55% over the past two days. The company's stock decreased by 8.51% over the past week and 24.42% since the start of the year, bringing its latest market capitalization to $2.4763 trillion.

Despite the downturn in Nvidia's stock, Blue Whale Capital LLP has increased its stake in the company, following a significant decrease in the company's stock price by nearly 24% this year. Blue Whale Capital had approximately 1.09 million shares of Nvidia as of the end of last year, valued at $147 million at that time.

Nvidia's shares faced pressure after the company announced a $55 billion expense related to restrictions on the export of its H20 chips to China and other regions, mandated by the US government. This news contributed to a decline of over 5% in its stock, closing at $106.11 on Wednesday.

In anticipation of the upcoming earnings season, Oppenheimer reiterated its recommendation for Nvidia as a top choice in the semiconductor sector, emphasizing AI as a promising growth area despite the macroeconomic and tariff challenges. Analyst Rick Schafer noted the anticipation of about 40,000 NVL72 systems being sold this quarter and significant growth in cloud services providers' capital expenditures by 2025.

Wednesday saw Nvidia's shares dropping over 10% as the Fed Chair raised concerns about potential impacts of US tariff policies on economic growth. This came amid broader market declines, with the Nasdaq posting a notably sharp reduction.

CoreWeave, a cloud services company, made headlines by deploying thousands of Nvidia's new Grace Blackwell GPUs, making it the first provider globally to offer these on a large scale. This collaboration with Nvidia highlights the advancement and efficiency brought by their latest GPU technology, further supporting AI innovation.

Despite the promising introduction of these new services, the market reaction was less favorable, with CoreWeave's stock experiencing a nearly 7% drop, and Nvidia's stock, while initially up by 1.35%, saw a significant drop of over 6% in after-hours trading.