Wall Street Breakfast Nvidia to take $5.5B hit on H20 chip
Apr 16, 2025
Nvidia faces a hefty $5.5 billion hit after the U.S. government requires a license to export its H20 chip to China. Meanwhile, Vera Bradley struggles with a disappointing rebranding effort, leading to new lows. Harley-Davidson is under pressure from major shareholders demanding a board overhaul and a CEO change. The automotive landscape sees updates with Ford and Rivian, while index futures present a mixed picture ahead of critical economic events.
AI Snips
Chapters
Transcript
Episode notes
Nvidia Faces Export Hurdle
- Nvidia must obtain a special license to export its H20 GPUs to China indefinitely, causing a $5.5 billion charge in quarterly results.
- Though the H20 was designed to comply with restrictions, China and industry expected it to be banned like other advanced AI chips.
Vera Bradley's Rebrand Struggles
- Vera Bradley's rebranding and shift to e-commerce have not resonated with investors, leading to record low shares under $2.
- Despite cash reserves and efforts to optimize inventory and diversify distribution, investors remain skeptical about the brand's profitability rebound.
Harley-Davidson Board Battle Brewing
- Shareholder H Partners is pushing for a shakeup at Harley-Davidson by aiming to remove three long-tenured board members including the CEO.
- The move responds to declining sales and a 45% share price drop, alongside criticisms of cultural depletion and remote work policies.