Nvidia discloses more China risks, but CEO praises Trump
They also asked the company to provide a timeline and description of its plans for the proposed facility.
Nvidia is "simply leasing a new space for existing employees, who need the room in the post-COVID return to work. The scope of work will remain unchanged," a company spokesperson said.
SALES GROWTH POWERS ON
Nvidia shares rose 4% on Thursday as news that a U.S. trade court blocked most of Trump's proposed tariffs also boosted investor sentiment. The company will add around $130 billion to its market value of about $3.289 trillion, if the gains hold.
Despite the China export curbs, Nvidia forecast sales of $45 billion, plus or minus 2%, in the second quarter, only slightly below analysts' average estimate of $45.90 billion, according to data compiled by LSEG. That would imply growth of about 50% from a year earlier.
Company executives also highlighted deals worth potentially billions of dollars in the coming months and years in Saudi Arabia, the United Arab Emirates and Taiwan, leading analysts to conclude the impact of U.S.-China trade tensions was not as bad as feared.
"Rather than downplay the China hit, (Huang) contextualized it as a known, manageable speed bump in an otherwise hyper-accelerated growth narrative," said Michael Ashley Schulman, chief investment officer of Running Point Capital.
In his praise for Trump, Huang highlighted the president's deal-filled tour of the Middle East.
"Trump wants U.S. tech to lead," Huang said. "The deals he announced are wins for America, creating jobs, advancing infrastructure, generating tax revenue and reducing the U.S. trade deficit."
Huang also said that he agreed with a vision expressed by cabinet officials such as Commerce Secretary Howard Lutnick of bringing factories back to the United States and staffing them with robots.
"Future plants will be highly computerized in robotics. We share this vision," Huang said.
(Reporting by Stephen Nellis in San Francisco; Additional reporting by Arsheeya Bajwa and Jaspreet Singh in Bengaluru; Editing by Sayantani Ghosh, Sonali Paul and Shounak Dasgupta)
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