US has slowed issuance of export licenses for AI chips, citing national security concerns.Nvidia stock tumbled after news, but analysts remain bullish despite potential headwinds.The move comes amid a broader review of artificial intelligence technology and could significantly impact chipmakers, particularly those heavily reliant on Chinese sales.
This development is especially problematic for Nvidia, which recently engaged in a fierce price war with Chinese tech giant Huawei in the AI chip market. InvestingPro calculates fair value using a combination of 13 financial models tailored to Nvidia's specific characteristics. Currently, their fair value sits at $926.93, a significant 16.1% below the current market price.For InvestingPro subscribers, the platform offers valuable insights. Subscribers could track analyst forecast changes and see that, despite the recent stock price decline, analysts remain bullish with a target price of $1,189.
While the current price and fair value may indicate a potential overvaluation, Nvidia boasts an impressive risk profile. Its financial health scores a perfect 5 out of 5.
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