Nvidia Stock: Export Controls Trigger 3% Share Decline

Nvidia's stock experienced a significant setback on Friday, closing down 3% at $135.91 amid new US government export restrictions. The proposed three-tier semiconductor export control system has drawn sharp criticism from the tech giant, which argues that limiting exports to standard data centers could potentially drive other countries toward alternative technologies without effectively addressing national security concerns. This market reaction comes against a backdrop of unprecedented demand for high-performance chips in the AI sector, with major tech companies significantly increasing their infrastructure investments. Microsoft's planned $77.6 billion investment in data center expansion exemplifies the robust demand driving Nvidia's market position.

Analysts Maintain Positive Outlook

Despite current market turbulence, financial experts remain optimistic about Nvidia's prospects. Market analysts project share price targets ranging from $170 to $190 by early 2025, reflecting confidence in the company's continued leadership in AI applications and potential for future growth. This positive sentiment is further supported by strong performance indicators from key manufacturing partners, with TSMC reporting quarterly revenues of €25.6 billion, largely driven by AI-related demand.