Piper sees H20 ban hurting Nvidia sales by $8B in July quarter

Piper Sandler keeps an Overweight rating on Nvidia (NVDA) after the company said it expects to be granted licenses to resume H20 chip sales to China. During the April quarter, the company posted $4.6B in sales for H20 and left an additional $2.5B on the table due to the ban, the analyst tells investors in a research note. Piper says the estimated impact from the ban in the July quarter was around $8B in sales. It suspects strong demand for these chips would have continued should the ban not been in place. The merchant artificial intelligence companies alongside Nvidia, namely Micron (MU) and AMD (AMD), would benefit from the lifting of this ban, contends Piper.

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