Cantor says Nvidia Q1 revenue remains intact with only two weeks left

After Nvidia (NVDA) filed an 8-K noting that its Q1 results will now include up to $5.5B of charges associated with H20 products and the U.S. Governments decision to require licenses to export to China, Cantor Fitzgerald sees “a fairly major hit” to EPS, which at “first blush” the firm thinks is now likely tracking closer to 76c than the consensus of 93c. However, Q1 revenues remain intact with only two weeks left and the firm still thinks revenues will be “a beat, though smaller” than the ones seen in the prior seven quarters. While it now appears investors need to derisk Nvidia completely from serving 20% of the AI market in China, the stock was trading down 6% on the news and the firm would be buyers on weakness as it reiterates an Outperform rating and $200 price target on Nvidia, which remains the analyst’s “Top Pick.”