Nvidia price target lowered to $150 from $175 at Piper Sandler

Piper Sandler lowered the firm’s price target on Nvidia (NVDA) to $150 from $175 and keeps an Overweight rating on the shares after the company announced charges of $5.5B associated with H20 products for inventory, purchase commitments, and related reserves. The charge comes after the U.S. government informed Nvidia that the H20 will require a license to be exported to China, the analyst tells investors in a research note. As a result, Piper reduced numbers to reflect the charges as well as future purchases of data center products to China. It finds the news surprising given the H20 chip was originally designed to meet export control restrictions originally set out by the U.S. government. Piper sees the incremental restriction as a part of the Trump Administration’s effort to keep chip sales and computing capabilities down in China following H20’s original clearance previously.