- NVDA closed at $96.91 on April 21, down 4.51%
- Earnings date set for May 28, 2025
- CEO calls on Japan to expand energy for AI infrastructure
- US restricts sales of AI chips to China, prompting $5.5B writedown
- NVDA eyes 23.7% annual revenue growth and next-gen edge AI
NVIDIA Corporation (NASDAQ: NVDA) closed at $96.91 on April 21, down 4.51% as investors react to regulatory pressures and geopolitical tensions. The company is set to report earnings on May 28, 2025, with Wall Street closely watching its performance amid rising challenges in AI chip exports and energy demands.
NVIDIA Corporation (NASDAQ: NVDA)
So far in 2025, NVDA stock has dropped 27.83%, underperforming the S&P 500’s 12.30% decline. Despite this, its long-term return remains strong, with a one-year gain of 27.22% and a five-year return of 1,343.61%. Investors are weighing near-term volatility against NVIDIA’s strong fundamentals and future growth trajectory.
Huang’s Warning: AI Needs Power, Not Just Chips
During a recent visit to Tokyo, CEO Jensen Huang urged Japanese leaders to expand energy capacity to support AI infrastructure. He highlighted Japan’s strengths in robotics and manufacturing but warned that its ambitions in AI may falter without adequate electricity.
His comments come as the International Energy Agency forecasts the fastest surge in electricity demand in years, driven by data center growth. Japan, which is hesitant to restart nuclear plants after the Fukushima disaster, is considering a $44 billion LNG project in Alaska to meet future needs.
The company’s expansion into AI-native wireless tech and edge computing raises concerns about power access for global deployments. At GTC 2025, NVIDIA announced partnerships with Cisco and T-Mobile to co-develop 6G technology integrated with its AI platforms. These collaborations signal the company’s vision for integrating AI into real-time systems, a strategy that will require massive energy support.
Regulatory Setbacks and Rising Scrutiny
NVIDIA is facing headwinds from new U.S. export restrictions. The Biden administration has barred sales of the company’s H20 AI chips to China, citing national security concerns. In response, NVIDIA expects a $5.5 billion writedown, further shaking investor sentiment.
The U.S. House has also launched a probe into NVIDIA’s chip sales to Southeast Asia and China. Lawmakers worry the technology may have helped Chinese startup DeepSeek develop an advanced AI chatbot, fueling political tensions over the use of American hardware.
These developments reflect a growing divide between the global demand for NVIDIA’s AI technology and the limitations imposed by government oversight.
Financial Strength and Edge AI Expansion
Despite regulatory issues, NVIDIA remains financially sound. It boasts a profit margin of 55.85% and an exceptional return on equity of 119.18%. Over the trailing twelve months, the company generated $130.5 billion in revenue and $72.88 billion in net income. Its operating margin expanded to 62.4% in fiscal 2024.
NVIDIA’s edge computing segment continues to expand. Its Jetson platform, along with software like Isaac, DeepStream, and Metropolis, empowers clients to deploy AI models outside of data centers. The firm’s 44.17 billion in free cash flow and low debt-to-equity ratio of 12.95% offer further stability.
With projected annual revenue growth of 23.7% over the next four years, NVIDIA remains a top AI and edge computing pick among hedge funds. The company’s technology is vital to industries undergoing AI transformation, even as it navigates new geopolitical realities.
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