On New York Wall Street, Nvidia’s share price suddenly and unexpectedly fell more than 6 percent after the end of the stock exchange. The reason for this is clearly a report of the company for US finance supervision that Nvidia expects an additional cost of about $ 5.5 billion as the new US government tightens export sanctions for AI chips for China. Accordingly, the Trump administration demands a license for export of H20 chips of NVidia, such as the People’s Republic from now on.
Since 2022, NVIDIA and the company have only been allowed to sell lame GPU accelerator to China. NVIDIA initially used a flaws to export the snatching versions of its AI accelerator, at the same time by the US government which banned this A800 and H800 AI accelerator for China under Biden 2023. The H20 chip is based on the same architecture (hopper), but is particularly adapted to American export sanctions.
Strict export rules are already frightened
First, Chinese companies snatched Nvidia’s export chips, but earlier this year it was reported that Chinese companies order more H20 chips for the AI model Dipsek developed in China. In addition, many observers and companies have expected that the new US government under Donald Trump can also limit H20 exports to China, which can also increase orders.
These fear has now come true. Because in a communication for US Stock Exchange Supervision Second (Securities and Exchange Commission) Nvidia explainsThe US government informed Nvidia on 9 April 2025 that “for the export of the company’s H20 ICS and all other ICS, which reach the memory bandwidth, add bandwidth or its combination, according to China (including Hong Kong and Macau) and D: In 5 countries or in 5 countries or its headquarters or parents, companies have a license”.
NVIDIA AI chips now prefer weapons exports
D: 5 countries can be mentioned in the list of “Industry and Security Bureau and Security” (BIS). It is a partial right of the United States Ministry of Commerce, which is dealt with with high technology and national security. D: Describes 5 countries With the US Arms Ambargo, which includes the People’s Republic of China Afghanistan, Iran, Iraq, North Korea, Libya, Russia and Syria.
The US government clearly keeps H20 chips with weapons at one level, but according to the NVIDIA declaration, the license liability is “right with the risk that the affected products can be used in a supercomputer in China”. The license obligation applies indefinitely on 14 April 2025.
Additional cost results and shares price press
These requirements are now suppressing the commercial result of NVidia, as the company continues to “expect the results of the first quarter to be almost included. The cost of $ 5.5 billion in relation to H20 products for inventory, acceptance obligations and related provisions”. The company’s company ends on 27 April 2025, the first quarter of 2026.
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NVIDIA is likely to be able to deal with these $ 5.5 billion costs, after all, the company recently scratched a $ 40 billion sales brand in the same quarter. At the same time, Nvidia earns 43 times more annual profit than AMD. Even with a future approach, the Stock Exchange initially reacted, doubting the new American export rules and dropped the price of Nvidia’s share slightly more than 6 percent. After all, China is an important sales market for the company. According to CNBC NVIDIA implemented $ 12 to $ 15 billion in the country in 2024. It should be less than now.
(FDS)
