From Yahoo Finance: 2025-04-16 06:18:00

Nvidia is facing a $5.5 billion charge in Q1 after the U.S. limited exports of its AI chips to China. This news is part of an escalating trade war between Washington and Beijing, causing Nvidia shares to drop by 6% in premarket trading. China also imposed export controls on AMD’s AI chip sales.

The U.S. government informed Nvidia on April 9 that an export license will be required “for the indefinite future” to sell its H20 chips to China. This is to prevent the risk of the chip being used in Chinese supercomputers. Nvidia expects its Q1 results on May 28 to include the $5.5 billion charge related to H20 products.

The U.S. Commerce Department is issuing new export licensing requirements for Nvidia’s H20 chip, AMD’s MI308, and their equivalents. AMD shares also fell by about 6% in premarket trading. China’s shrinking to 10% of Nvidia’s revenue from 20% is now expected to go close to zero.



Read more at Yahoo Finance: Nvidia to Record $5.5B Charge as US Cracks Down on Chip Exports to China