Nvidia Stock: Bright Start to 2025 Faces New Challenges
Nvidia shares gained 4.3% in the first five trading days of 2025. This follows 6.9% and 5.5% gains during the same periods in 2023 and 2024. In those years, the stock delivered triple-digit annual returns fueled by AI demand and profit growth.
However, Nvidia stock dipped 1.1% to $138.54 after Wednesday’s close. Markets were shut Thursday for a national day of mourning for former U.S. President Jimmy Carter.
The late-Wednesday decline followed reports of potential new U.S. chip export restrictions. The Biden administration may issue final rules creating three tiers of chip curbs. Top-tier allies would have full access to U.S. chips. Most countries would face restrictions, while exports to China would be largely banned.
Nvidia’s spokesperson criticized the proposed rules. They argued such policies could harm economic growth and U.S. leadership in technology.
China has become a smaller market for Nvidia due to existing restrictions. Nvidia cannot sell its most advanced AI chips in China. In the past four quarters, China accounted for 12% of Nvidia’s global revenue, down from 21% a year earlier.
Despite challenges, Nvidia struck a deal with the Netherlands government. The agreement involves Nvidia supplying products for an AI facility in the country.
Separately, Nvidia’s EVP Ajay K. Puri sold $5.5 million in shares last week. The sales were executed under a Rule 10b5-1 plan. Such plans automatically execute trades based on pre-set conditions, ensuring transparency.
Nvidia remains a key player in AI, but regulatory challenges could impact its future growth.
Source: Dow Jones Newswire
