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Nvidia’s Earnings Catastrophe: Chaos in the Chip World!

Wall Street Braces for a Financial Nightmare!

Nvidia (NASDAQ: NVDA) is getting ready to unveil its earnings next week, and let’s just say the buzz isn’t exactly sparkling! Forget what the consensus says; expectations are so low, they’re practically underground!

In a shocking twist, this quarter saw the bombshell announcement of the U.S. slapping restrictions on H20 exports to China! As a direct hit, Nvidia just axed a staggering $5 billion in inventory, leading to a massive 15% blow to its margins! Get ready for profits to plummet from the low 70% range straight into the depths of the high 50s. Ouch!

On the surface, you might think $5 billion in write-offs translates to a jaw-dropping $15 billion revenue impact for the year—and roughly $5 billion for each of the next three quarters. But hold your horses! Nvidia didn’t even hint at the revenue chaos in its press release, suggesting there’s plenty more going on behind the scenes!

Get Ready for a Turbulent Forecast!

As we gear up for the report, brace for a blowout in F1Q26, but don’t be shocked by a messy guide for F2Q26. The real shockwaves are set to hit hard in F2H26! Keep your eyes glued to the buzz surrounding the Blackwell ramp-up; we’re betting it’s going to turn this ship around!

Here’s the Breakdown: Why the Mess Won’t Matter!

Investors have thrown in the towel on the AI craze, but with an optimistic second-half outlook, they’ll be scrambling back for those premium AI stocks!

Export Restrictions: A Double-Edged Sword!

Yes, those China export restrictions are dragging Nvidia down, but did you hear the sneaky news? The U.S. has scrapped the controversial AI Diffusion rule! This measure intended to choke off the global spread of advanced AI capabilities, and its demise could MEAN BIG THINGS for U.S. chipmakers like Nvidia!

While Nvidia weathered the storm of previous restrictions with grace, they made waves over the Diffusion rule. Why? Because its cancellation might pack enough punch to drown out any gloom from the China fallout!

Why 2H25 Could Be the Game-Changer:

• Grace Blackwell is ON FIRE! CEO Jensen Huang is oozing confidence post-Comptuex, touting INSANE demand.
• The transition to next-gen Blackwell Ultra GB300 systems? A total breeze!
• Those game-changing Middle-East deals? They could inject life into 2H, overpowering that pesky China drag!

Here’s the Bottom Line!

Nvidia’s recent news is looking surprisingly positive! Cloud Giants are upping their game, Deep Seek turned out to be a flop, the Diffusion rule is OUT, and Blackwell is revving up! Yet, the stock has been as stagnant as a rock—pointing to potential explosive gains once the tide turns!

Watch Out, Investors! The hedge funds may have pulled back for now, but they will inevitably chase Nvidia as fundamentals jump in the second half of this year!