Corrects sixth bullet to say Reuters reported in January, not last month

** Worries that AI trade is "over" is a little premature, Bernstein says while noting that Nvidia's NVDA.O valuation is becoming increasingly attractive

** It's been a rough start for NVDA this year along with many of its AI-semiconductor peers, hurt by growth fears, supply chain constraints, tariff and regulatory risks

** NVDA trades at ~25 times its 12-month forward earnings, their weakest level in a year and close to 10-year lows, as per brokerage estimates

** "Nvidia's de-rating is a little stunning especially since it coincides with the beginning of a new product cycle (referring to Blackwell Chips)" - Bernstein

** Blackwell is NVDA's new flagship AI chips

** In January, Reuters reported Donald Trump's administration is looking at imposing restrictions on the sale of the H20 chip to China

** "Banning the H20 would make no sense as its performance is already well below Chinese alternatives; a ban would simply hand the Chinese AI market completely over to Huawei" - brokerage

** Bernstein est. every $10 bln in China datacenter revenue amounts to ~25 cents in NVDA EPS; an outright ban would likely impact earnings in the mid to high single digits

** Shares of NVDA up 0.75% at $114.90 premarket

** Brokerage maintains NVDA's "outperform" rating with a $185 PT

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))