Jim Cramer Questions Nvidia’s Trading Pattern Amid Positive TSMC Earnings, Biden’s China Export Rules – Metaplatforms (NASDAQ:META), Amazon.com (NASDAQ:AMZN)

NVIDIA Corp. NVDA faces renewed market controls which Jim Cramer questioned the stock’s trading pattern on Thursday, amid growing concerns over China sanctions and positive earnings from the key supplier Taiwan Semiconductor Manufacturing Co. TSM.

What happened: “When will they let NVDA go higher?” CNBC’s Cramer wrote on X, highlighting the stock’s recent pressure amid TSMC’s strong fourth-quarter performance. TSMC reported earnings of $2.24 per share on revenue of $26.88 billion, beating estimates by 3.70% and 1.91%, respectively.

The comment comes as Nvidia grapples with a $10 billion backlash from major technology customers, including Microsoft Corp. MSFT, Amazon.com Inc. AMZNand Meta Platforms Inc. METApostponed orders for their Blackwell GB200 data center racks due to overheating issues.

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Why it matters: Adding to the challenges, Chairman Joe Biden‘s administration has imposed new semiconductor export restrictions to China, potentially affecting up to 50% of Nvidia’s chip market, according to DA Davidson analyst Gil Luria. This follows Wednesday’s action placing several Chinese entities on a US trade restriction list, including AI developer Zhipu AI.

“Geopolitical tensions, particularly between the US and China, have significantly affected the semiconductor industry,” noted Defiance ETFs managing director Sylvia Jablonski. “Every time we’ve heard a report of a potential U.S. ban on semiconductors from the White House, we’ve seen NVDA and every other semiconductor stock drop.”

Despite these headwinds, the quantum computing sector is showing promise, and Microsoft is encouraging companies to become “quantum-ready” by 2025.

Nvidia plans to host a “Quantum Day” at its upcoming GTC conference in March, signaling a long-term commitment to the technology despite CEO Jensen Huang‘s view that practical quantum computing remains decades away.

Price Action: Nvidia stock closed at $133.62 on Thursday, down 1.92% for the day. In after-trade, the share rose slightly by 0.16%, according to data from Benzinga Pro.

Nvidia has a consensus price target of $170.18, with a high of $220 and a low of $120. Recent ratings from HSBC, Rosenblatt and Benchmark give an average target of $198.33, implying an upside of 48.20%.

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Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga editors.