Nvidia shares were slightly higher in premarket trading on Wednesday, without some of the customary excitement around the chip maker’s earnings. Doubts about its China sales look to be weighing on the stock.
Nvidia shares were up 0.6% at $136.33 in premarket trading. The stock rose 3.2% the previous day. The headline news is likely to be around how restrictions on Nvidia’s sales of H20 chips for the Chinese market will affect the company in the short term, with worries that could lead to underwhelming guidance.
“I don’t think it is going to be a catalyst quarter. It’s noisy– you have the China restrictions, etc. So, July quarter guidance probably has to come down because of the H20 issue, and that’s about [a] 10% hit probably, but I think that’s in the stock,” said Stephanie Link, chief investment strategist at Hightower Advisors.