Nvidia Shares Soar 4.74% on Strategic Moves Amid Export Restrictions
1min read On May 12, 2025, Nvidia's stock rose by 4.74% in pre-market trading, reflecting a positive market sentiment towards the company's recent developments and strategic moves.
Nvidia, a leading AI chip manufacturer, has raised the prices of its GPUs by 10% to 25% to mitigate the impact of export restrictions and rising production costs. The price hike affects various products, including the AI chips H200 and B200, as well as the high-end RTX 5090 graphics card, which has seen a price increase of over 25% since the beginning of the year. This move is part of Nvidia's efforts to counteract the significant financial losses incurred due to export restrictions and increased production costs in the United States.
Nvidia's CEO, Jensen Huang, has expressed concerns about the company's ability to maintain its market share in China, which has been a crucial market for the company. Despite the export restrictions, Nvidia is planning to launch a lower-spec version of the H20 chip in July, which will be subject to limited export to China. This strategic move aims to maintain Nvidia's presence in the Chinese market, which is expected to grow to approximately $500 billion in the coming years.
Nvidia's financial performance has been under scrutiny, with the company's revenue growth for the first quarter of the 2026 fiscal year expected to be 65% year-over-year, significantly lower than the 262% growth seen in the previous year. This has raised concerns about the company's ability to sustain its growth momentum. However, Nvidia's strong position in the AI chip market and its strategic initiatives to mitigate the impact of export restrictions and rising production costs are expected to support its financial performance in the coming quarters.
