U.S. Government Imposes Export Restrictions on Nvidia's H20 AI Chips to China

Nvidia's H20 AI chips may be spared from export controls -- for now | TechCrunch

Nvidia CEO Jensen Huang appears to have struck a deal with the Trump administration to avoid export restrictions on the company's H20 AI chips. The H20, the most advanced Nvidia-produced AI chip that can still be exported from the U.S. to China, was reportedly spared thanks to a promise from Huang to invest in new AI data centers in the U.S. According to NPR, Huang made the proposal during a dinner at Trump's Mar-a-Lago resort sometime last week. Nvidia declined to comment. Many in the semiconductor industry feared H20s, which are modified to have lower performance than other Nvidia chips, were headed for restrictions because they were reportedly one of the chips China-based DeepSeek used to train its R1 open AI model. Released in January, R1 made headlines for its strong performance relative to models from U.S.-based AI labs including OpenAI. Senators from both sides of the aisle have called for restrictions on the H20. Even the Trump administration was said to have been preparing H20 export controls prior to its reversal in course, according to NPR. While it isn't totally surprising that Trump allegedly agreed to shelve some potential chip restrictions in exchange for a commitment from Nvidia to invest in U.S. AI infrastructure, allowing Nvidia to continue exporting H20s to China would appear to counter the administration's goal of securing U.S. dominance in AI. Making the move even more perplexing is the Trump administration's decision to keep in place the set of AI chip export rules introduced by outgoing President Joe Biden in January. Those rules layer chip export limits on nearly every country outside the U.S. -- including U.S. allies -- with harsher restrictions on China and Russia. Nvidia has called those guidelines "unprecedented and misguided" and said that they're likely to stifle global innovation. Many AI companies besides Nvidia have leaned into Trump's "America-first" approach to AI in bids to curry favor with the administration. OpenAI teamed up with SoftBank and Oracle for a $500 billion U.S. data center initiative dubbed the Stargate Project in January. Microsoft pledged $80 billion to build AI data centers in its 2025 fiscal year, with 50% of that earmarked for the U.S. Trump has strong-armed certain partners to get his desired outcome. He reportedly told Taiwanese semiconductor company TSMC that it would have to pay a tax up to 100% if the company didn't build new chip factories in the U.S.

Nvidia H20 chip exports hit with license requirement by US government | TechCrunch

Semiconductor giant Nvidia is facing unexpected new U.S. export controls on its H20 chips. In a filing Tuesday, Nvidia said it was informed by the U.S. government that it will need a license to export its H20 AI chips to China. This license will be required indefinitely, according to the filing -- the U.S. government cited "risk that the [H20] may be used in [...] a supercomputer in China." Nvidia anticipates $5.5 billion in related charges in its Q1 2026 fiscal year, which ends April 27. The company's stock was down around 6% in extended trading. The H20 is the most advanced AI chip Nvidia can export to China under the U.S.' current and previous export rules. Last week, NPR reported that CEO Jensen Huang might have talked his way out of new H20 restrictions during a dinner at President Donald Trump's Mar-a-Lago resort, in part by committing that Nvidia would invest in AI data centers in the U.S. Perhaps not-so-coincidentally, Nvidia announced on Monday that it would spend hundreds of millions of dollars over the next four years manufacturing some AI chips in the U.S. Pundits were quick to point out that the company's commitment was light on the details. Multiple government officials had been calling for stronger export controls on the H20 because the chip was allegedly used to train models from China-based AI startup DeepSeek, including the R1 "reasoning" model that threw the U.S. AI market for a loop in January.

US government imposes license requirement on Nvidia H20 exports | TechCrunch

Semiconductor giant Nvidia is facing unexpected new U.S. export controls on its H20 chips. In a filing Tuesday, Nvidia said it was informed by the U.S. government that it will need a license to export its H20 AI chips to China. This license will be required indefinitely, according to the filing -- the U.S. government cited "risk that the [H20] may be used in [...] a supercomputer in China." Nvidia anticipates $5.5 billion in related charges in its Q1 2026 fiscal year, which ends April 27. The company's stock was down around 6% in extended trading. The H20 is the most advanced AI chip Nvidia can export to China under the U.S.' current and previous export rules. Last week, NPR reported that CEO Jensen Huang might have talked his way out of new H20 restrictions during a dinner at President Donald Trump's Mar-a-Lago resort, in part by committing that Nvidia would invest in AI data centers in the U.S. Perhaps not-so-coincidentally, Nvidia announced on Monday that it would spend hundreds of millions of dollars over the next four years manufacturing some AI chips in the U.S. Pundits were quick to point out that the company's commitment was light on the details. Multiple government officials had been calling for stronger export controls on the H20 because the chip was allegedly used to train models from China-based AI startup DeepSeek, including the R1 "reasoning" model that threw the U.S. AI market for a loop in January.

Trump reportedly suspends Nvidia H20 export ban plan after $1 million dinner with Jensen Huang

The U.S. government has pulled back from its plan to block Nvidia's H20 HGX GPU exports to China, following a meeting between the U.S. President Donald Trump and Nvidia's chief executive Jensen Huang at a $1 million-a-head dinner. During the tête-à-tête Huang vowed to invest in domestic AI infrastructure, reports NPR. The Trump administration reportedly planned to ban sales of Nvidia's H20 HGX GPUs to China starting this week, but changed its mind. The U.S. had spent months preparing new restrictions on shipments of H20 HGX GPUs -- the highest-performing AI GPUs still permitted for sale in China -- and those measures were set to take effect as early as this week, according to NPR, which cites two sources. The change in course followed a dinner at Trump's Mar-a-Lago resort, which Nvidia chief executive Jensen Huang attended, reportedly at a $1 million admission fee. Shortly afterward, the company reportedly promised to pour more money into U.S.-based AI data centers, a move that helped ease concerns from the administration. As it turns out, the Trump administration planned to ban shipments of Nvidia's H20 to China even ahead of May 15, when the Biden administration's AI Diffusion Rule is set to come into effect and prohibit sales of all American AI processors to Chinese entities. Under the new AI Diffusion Rule, China is effectively blocked from getting American processors as license exceptions that take into account limited performance or limited quantities will not apply to high-risk countries, including China. Nvidia tailored its H20 GPU to specifically fit into total processing performance (TPP) metric allowed for exports to China. The AI Diffusion Rule introduces the low processing performance (LPP) exception that allows American companies to ship a limited number of GPUs that meet TPP thresholds to customers in the so-called Tier 2 countries (outside of the U.S. and its 18 allies) without a license. However, China cannot use LPP to legally obtain even minimal amounts of advanced U.S. AI processors as all AI processor exports to China require a license, and the default position is to deny them, making it extremely difficult for Chinese firms to legally acquire advanced AI hardware from the U.S. For Nvidia, this is a major problem, as it reportedly sold $16 billion worth H20 GPUs to China entities in the first quarter of calendar 2025. However, it is unclear whether Nvidia is now allowed to sell H20 till May 15, or after May 15 too. If the latter is the case, we can only wonder whether to enable H20 exports to China the Trump administration will have to alter the Biden administration's AI diffusion rule, axe it altogether, or grant Nvidia export licenses to sell to big customers.

Nvidia writes off $5.5 billion in GPUs as US gov't chokes off supply of H20s to China

Nvidia announced it would take a $5.5 billion financial hit after U.S. authorities imposed new export restrictions on its H20 HGX AI GPU designed for the Chinese market. The U.S. government cited H20's memory and interconnect bandwidth as well as its potential use in supercomputers as reasons for restrictions. Nvidia is not alone, as the U.S. Department of Commerce has also restricted sales of AMD's Instinct MI308 to China, according to Reuters. "On April 9, 2025, the U.S. government informed Nvidia that the USG requires a license for export to China (including Hong Kong and Macau) and D:5 countries [...] of the company's H20 [GPUs] and any other circuits achieving the H20's memory bandwidth, interconnect bandwidth, or combination thereof," a statement by Nvidia reads. "The USG indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China. On April 14, 2025, the USG informed the company that the license requirement will be in effect for the indefinite future." President Trump's administration planned to restrict sales of Nvidia's H20 HGX and similar processors starting in April, so Nvidia's chief executive, Jensen Huang, reportedly even attended a $1 million-a-head dinner with the U.S. president to ease concerns. That did not work, and the company will now take a $5.5 billion charge in the first quarter as it now has unsold inventory of its H20 GPUs. According to section 8.01 of the report. "The company's first quarter of fiscal year 2026 ends on April 27, 2025. First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves." Nvidia's H20 HGX is a cut-down version of its H100 processor that the company specifically engineered to comply with the U.S. government's restrictions imposed on GPUs bound for China in late 2022. Compared to H100, the H20 features significantly reduced AI performance and dramatically reduced HPC performance, which makes it barely suitable for supercomputer workloads that require FP64 compute precision. However, H20 HGX still carries 96GB of HBM3 memory with a peak bandwidth of 4 TB/s and 900 GB/s NVLink interconnections to build 8-way AI servers, thus providing competitive performance in AI workloads. As a result, H20 HGX has become rather popular in China. Chinese companies like Alibaba, ByteDance, and Tencent have deployed large AI training and inference clusters based on these GPUs. Earlier this month, it was reported that Chinese tech giants spent $16 billion on H20 HGX GPUs in the first quarter ahead of expected export restrictions by the U.S. government starting in May. In addition to restricting sales of Nvidia's H20 GPUs to Chinese customers, the U.S. Commerce Department also restricted shipments of AMD's Instinct MI308 to China and other D:5 countries. Since AMD is considerably behind Nvidia in sales of AI GPUs, this will barely have a drastic effect on the company's business, though.

Trump reportedly walking back AI chip export curbs to China

Nvidia may have been served a particularly delicious digestif after dropping a million bucks for dinner at President Trump's Florida home Mar-a-Lago: A reprieve on restrictions of its AI chips to China. According to NPR, not long after Nvidia CEO Jensen Huang showed up at the seven-figure soiree last week, the Trump administration quietly shelved a plan to tighten restrictions on the sale of Nv's H20 GPUs to the Middle Kingdom. The policy reversal reportedly came after Nvidia promised the Trump administration fresh investments in US-based AI datacenters, according to one source cited by NPR. Trade relations between Washington and Beijing have steadily worsened since Trump took office, with the President on Wednesday pushing tariffs on Chinese imports to at least 125 percent. Consistent with that hard-line stance, the administration was expected to further tighten curbs on the sale of Nvidia accelerators, including the H20, to China. The processor is the most powerful part Nvidia can legally sell in China. The chips are coveted by Chinese AI model builders and cloud providers. While China has developed homegrown alternatives to Nvidia's accelerators, many of the companies that designed them are on the US Entities List, a designation that makes it nearly impossible for them to have their GPUs made by leading-edge foundries, in particular TSMC and Samsung. Huawei, however, has been accused of using proxy companies to subvert these rules. Chinese firms are reportedly trying to stockpile $16 billion worth of H20s in anticipation of further export restrictions. Nvidia declined to comment on this story. The Register asked the US Commerce Department for comment. Efforts to limit China's access to slick accelerators used in supercomputing and AI applications are by no means new. Over the past three years, Uncle Sam has worked to derail China's supply of top-drawer chips by banning the export of some devices and only allowing export of products with processing power well below the capabilities of the most modern parts. Nvidia responded by creating cut-down versions of its products and is thought to want to do so again for its latest generation of Blackwell parts. ®

Trump's trade war with China just cost Nvidia $5.5B

World War Fee The Trump administration's latest salvo in the US-China trade war has forced Nvidia to take a $5.5 billion charge, the GPU goliath revealed in a Tuesday regulatory filing that sent its stock tumbling in after-hours trading. Details so far are light, but it's safe to assume it's tied to newly implemented export controls essentially barring the sale of Nvidia's H20 AI accelerators into China, Hong Kong, and other nations of concern. Uncle Sam has the option of scrutinizing orders and allowing some through, but it's assumed Trump-era officials will default to no, meaning Nvidia won't be able to shift its precious silicon as expected. Nvidia learned of the clampdown on April 9 and was later informed the rules would remain "in effect for the indefinite future." According to its regulatory filing to America's financial watchdog, the SEC, the controls aim to prevent the chips from finding their way into Chinese supercomputers. "First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves," the SEC filing reads. Nvidia's first quarter of its fiscal year is the three calendar months to the end of April. In layman's terms, Nvidia most likely has a bunch of H20s it thought it was going to be able to sell to the Chinese but now are taking up space in warehouses while it waits for the Trump administration to decide whether its scheme to build half a trillion bucks worth of AI servers in the US is a big enough bargaining chip to grant the necessary export licenses to free those particular GPUs. This likely wasn't the outcome CEO Jensen Huang was looking for when he attended a $1 million-a-head dinner at the US President's Mar-a-Lago resort home in Florida earlier this month. Following the dinner, the Trump administration paused plans to move forward with export controls on Nvidia's H20 accelerators. However, considering the scale of Nvidia's commitment yesterday to vastly expand its US manufacturing footprint alongside TSMC, Wistron, Foxconn, and others, it's possible the Trump White House may eventually green light some of its H20 shipments. If that's the case, those lost revenues could end up being recouped in later quarters. This wouldn't be the first time the US has cracked down on the export of Nvidia accelerators to China. Starting in late 2022, the Biden administration enacted progressively more restrictive performance caps on AI accelerators sold into the Middle Kingdom. Each time, Nvidia retooled its designs, cutting down interconnect bandwidth or fusing off parts of the chip to kneecap their performance. That limbo bar has now been lowered to include Nvidia's "H20 integrated circuits and any other circuits achieving the H20's memory bandwidth, interconnect bandwidth, or combination thereof," the SEC filing said. Nvidia declined to comment. Its stock was down more than 6 percent in after-hours trading on the news. ®

Trump administration backs off Nvidia's H20 chip crackdown after Mar-a-Lago dinner, NPR reports

April 9 (Reuters) - The Trump administration has reversed course on plans to restrict exports of Nvidia's (NVDA.O), opens new tab H20 artificial intelligence chips to China after CEO Jensen Huang attended a Mar-a-Lago dinner last week, NPR reported on Wednesday. The planned American export controls on the chips -- the most advanced AI processor legally available in China under U.S. export controls -- had been in the works for months, NPR reported, citing two sources, and were ready to be implemented as soon as this week. The change in plans came after Nvidia promised the Trump administration new U.S. investments in AI data centers, the NPR report said. The White House and Nvidia did not immediately respond to Reuters' requests for comment. U.S. President Donald Trump's administration was considering tightening restrictions on the AI leader's sales of its H20 chips designed for the China market, Reuters had reported in January. The idea to restrict shipments of those chips to China has been under consideration since Democratic former President Joe Biden's administration. In February, Reuters exclusively reported a surge in orders for the H20, driven by booming demand for Chinese startup DeepSeek's low-cost AI models. Chinese companies, including ByteDance, Alibaba Group (9988.HK), opens new tab and Tencent Holdings (0700.HK), opens new tab, have placed at least $16 billion in orders for Nvidia's H20 server chips in the first three months of the year, the Information reported last week. Two U.S. lawmakers, Republican John Moolenaar and Democrat Raja Krishnamoorthi, called for more restrictions on exports of Nvidia's artificial intelligence chips in late January. Reporting by Juby Babu in Mexico City; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

Nvidia to take $5.5bn hit as US clamps down on exports of AI chip to China

Nvidia has said it expects to take a $5.5bn blow after the US clamped down on the Silicon Valley group's ability to export artificial intelligence chips to China. The group said in a regulatory filing late on Tuesday that the H20 chip, which is tailored for the Chinese market to comply with export controls that already prevent the sale of its most powerful chips in China, will now also require a special license to sell to customers in the country. Nvidia said in its filing that the US government had said the move was necessary to address the risk of the H20 being used in "a supercomputer in China". The group said it would take a $5.5bn charge in the quarter to April 27 "associated with H20 products for inventory, purchase commitments and related reserves". Nvidia shares fell 4 per cent in after-hours trading on Tuesday. The move marks the latest example of how the administration of Donald Trump is using tariffs and other trade barriers to increase pressure on Beijing. The US president has already increased tariffs on Chinese imports to 145 per cent, although some consumer electronics have received a temporary reprieve. This is a developing story

NVIDIA says the US has put export restrictions on H20 AI chips

According to an SEC from NVIDIA, the US government now requires companies to obtain a license to export H20 integrated circuits and any other products that achieve the same performance benchmarks. The filing states that "the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China." Mainland China is not the only place targeted by this license; NVIDIA will also require permission to sell the H20 to the territories of Hong Kong and Macau as well as to nations with the D:5 designation as . The H20 chips are currently the most advanced chips that can be sold to select international markets under present laws and they are powerful enough to be used for artificial intelligence applications. NVIDIA has wanted the ability to retain Chinese customers for these products and last week, it seemed like the company may have gotten a on new restrictions. However, it appears that the new license requirement "will be in effect for the indefinite future." NVIDIA said in the SEC filing that it now expects to report about $5.5 billion in charges related to "inventory, purchase commitments and related reserves" associated with the H20 circuits in the results for its current fiscal quarter.

U.S. issues export licensing requirements for Nvidia, AMD chips to China

TAIPEI, TAIWAN - MARCH 26: A circuit board featuring technologies of Snapdragon and semiconductor firm Qualcomm is seen at the AI Expo Taiwan, in Taipei, Taiwan, on March 26, 2025. The U.S. Commerce Department said on Tuesday it was issuing new export licensing requirements for Nvidia's NVDA.O H20, AMD's AMD.O MI308 artificial intelligence chips, as well as their equivalents, to China. "The Commerce Department is committed to acting on the President's directive to safeguard our national and economic security," a Commerce spokesperson said. Nvidia said earlier Tuesday that it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China, a key market for one of its most popular chips.

Nvidia shares fall after it says US controls on exports of AI chip will cost it $5.5 billion

BANGKOK (AP) -- Shares in computer chip makers slumped in after-hours trading and in Asia after Nvidia said tighter U.S. government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion. The company, which announced Monday that it will produce its artificial intelligence super computers in the United States for the first time, said the government told it that its H20 integrated circuits and others of the same bandwidth would be subject to the controls for the "indefinite future." In a regulatory filing, it said the government said the controls addressed risks that the products "may be used in or diverted to, a supercomputer in China." Nvidia's shares fell 6.3% in after-hours trading. Shares in rival chip maker AMD dropped 7.1% after markets closed. Asian technology giants also saw big declines. Testing equipment maker Advantest's shares fell 6.7% in Tokyo, Disco Corp. lost 7.6% and Taiwan's TSMC dropped 2.4%. Earlier, reports had said the Trump administration had backed away from imposing stricter licensing requirements on the H20 chip. Commerce Department officials were not immediately available for comment early Wednesday. Nvidia said Monday it has commissioned more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas -- part of an investment the company said will produce up to half a trillion dollars of AI infrastructure in the next four years. The announcement comes after President Donald Trump and other officials said tariff exemptions on electronics like smartphones and laptops were only a temporary reprieve until officials develop a new tariff approach specific to the semiconductor industry. Trump claimed that decision as a victory for his effort to expand manufacturing in the U.S.

Nvidia expects $5.5bn hit as US tightens chip export rules to China

The rules come amid an escalating trade war between the US and China, with both countries introducing steep trade tariffs on each other covering various goods. Nvidia announced on Tuesday that the US government had told it last week that the H20 chip required a permit to be sold to China, including Hong Kong. The tech giant said federal officials had advised them the licence requirement "will be in effect for the indefinite future". "The [government] indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China," Nvidia said. The company declined to comment further when contacted by the BBC. Nvidia's AI chips have been a key focus of US export controls. Founded in 1993, it was originally known for making the type of computer chips that process graphics, particularly for computer games. Long before the AI revolution, it started adding features to its chips that it says help machine learning. It is now seen as a key company to watch to see how fast AI-powered tech is spreading across the business world. The company's value took a hit in January when it was reported that a rival Chinese AI app, DeepSeek, had been built at a fraction of the cost of other chatbots. At the time, the US was considered to have been caught off guard by their rival's technological achievement. Nivida said its $5.5bn charges would be associated with H20 products for inventory, purchase commitments and related reserves.

Nvidia Chip Sales Continue in China After CEO's Visit to Mar-a-Lago

A planned export restriction was reportedly cancelled after Nvidia CEO Jensen Huang attended a $1 million per-head dinner at Mar-a-Lago. Nvidia will be permitted to continue selling H20 graphics processing units in China following a visit to Mar-a-Lago by CEO Jensen Huang, according to NPR. Huang attended a dinner last Friday at the resort that was priced at $1 million per head, though it is unclear whether he spoke with President Trump. The White House has not commented on the pivot but was reportedly planning on implementing restrictions banning H20 sales in China imminently, potentially within days. NPR reports that Huang offered to invest more into U.S. AI data centers at a time when Microsoft is pulling back and shifting tariffs threaten to raise the cost of construction. The United States already restricts exports of Nvidia's cutting-edge H100 chips to China, over concerns that the country will develop AI for use in warfare and mass surveillance. Not an unfounded concern, as the country has often brutally repressed its citizenry, especially the Uyghur ethnic minority. But CEOs find God when it comes to making money. China is a major market for Nvidia, so the company convinced the government to allow it to sell chips with somewhat neutered performance, including the H20. To put the importance of China for Nvidia into context, it was recently reported by The Information that Chinese firms purchased $16 billion worth of H20 chips in the first three months of 2025, anticipating an impending ban. In that sense, ponying up $1 million for $16 billion in sales is a pretty good return on investment. Similar to Apple and its CEO Tim Cook, Huang has been careful to walk a fine line on the subject of China. Early this year he made a quiet visit to the country, where he reinforced the country's role in Nvidia's growth. Huang noted that more than 1.5 million developers in China use CUDA, its software toolkit for training AI on its chipsets. Nvidia has collaborated with more than 3,000 startups in the country, he added. "Over the past two decades, we have significantly contributed to the modernization of one of the world's most dynamic markets, and we take immense pride in our role within this ecosystem." One could argue that export restrictions on China have been something of a double-edged sword. They may slow the country's advancements in weaponry or surveillance, but the technology industry there has become adept at making its models more efficient, doing more with less. Nothing has exemplified that more than DeepSeek R1, a lightweight AI model that was reportedly built in just two months and with less than $6 million. The company used compliant H800 chips to train the model. The H20 chip is particularly well suited for inference tasks, like the reasoning technique that was initiated by OpenAI's o1 and DeepSeek's R1 models. Huawei is another company that found the silver lining in export restrictions. The smartphone maker was hobbled after President Trump, during his first administration, restricted the company's access to Western-made processors and software. Last year it unveiled its first smartphone with its own homegrown chip and operating system, a feat many critics did not believe it would be able to accomplish so quickly. No, it no longer needs to worry about playing nice with the Trump administration. Kissing the ring may have worked for Nvidia's CEO, but many other technology leaders have made the pilgrimage to Mar-a-Lago, and it is not clear they will get much out of it. President Trump's administration remains hawkish on big tech over the belief they have censored conservative viewpoints. Meta continues to face a fast-approaching FTC antitrust trial, despite large donations and repeated trips by Mark Zuckerberg to curry Trump's favor. Either way, the latest move is another example of how easy it can be to manipulate the Trump administration. If China is such a clear-cut bad actor on the global stage trying to become the new world power, why is President Trump allowing them to continue buying AI chips? At least maybe China buying chips while slapping tariffs on their goods imported to America could reduce the trade deficit.

Trump administration backs off Nvidia's 'H20' chip crackdown after Mar-a-Lago dinner

Nvidia CEO Jensen Huang delivers the keynote address at the annual Nvidia GTC conference in San Jose, Calif. last month. Justin Sullivan/Getty Images hide caption When Nvidia CEO Jensen Huang attended a $1 million-a-head dinner at Mar-a-Lago last week, a chip known as the H20 may have been on his mind. That's because chip industry insiders widely expected the Trump administration to impose curbs on the H20, the most cutting-edge AI chip U.S. companies can legally sell to China, a crucial market to one of the world's most valuable companies. Following the Mar-a-Lago dinner, the White House reversed course on H20 chips, putting the plan for additional restrictions on hold, according to two sources with knowledge of the plan who were not authorized to speak publicly. The planned American export controls on the H20 had been in the works for months, according to the two sources, and were ready to be implemented as soon as this week. The change of course from the White House came after Nvidia promised the Trump administration new U.S. investments in AI data centers, according to one of the sources. American lawmakers have been pressuring the Trump administration for weeks to place stricter curbs on cutting edge technology related to artificial intelligence. In February, Sens. Elizabeth Warren, D-Mass., and Josh Hawley, R-Mo., jointly called for export controls on the H20 chip after Chinese tech company DeepSeek unveiled a breakthrough AI chatbot that stunned the world in January. The Trump administration's decision to allow Chinese firms to continue to purchase H20 chips is a major victory for the country, said Chris Miller, a Tufts University history professor and semiconductor expert. "Even though these chips are specifically modified to reduce their performance thus making them legal to sell to China -- they are better than many, perhaps most, of China's homegrown chips," Miller said. "China still can't produce the volume of chips it needs domestically, so it is critically reliant on imports of Nvidia chips." The White House and the Commerce Department did not return requests for comment. A spokesman for Nvidia declined to comment. It is unclear if Huang spoke directly to Trump during the Friday event, but two sources say until then, the assumption had been that Washington's trade war with China would soon include tight controls on the H20 chip -- which were among the chips used by DeepSeek. Since 2022, U.S. regulators have restricted what semiconductor chips Nvidia can sell to China out of fear that Beijing could harness American technology to bolster its AI and military capabilities. The H20 arose under these constraints, becoming the most powerful AI chip it could export to China under the law. This year, the H20 chip has become increasingly coveted by artificial intelligence companies, because it is designed to support inference, a computational process used to support AI models like China's DeepSeek and other AI agents being developed by Meta and OpenAI. As a result, the H20 had appeared as if it, too, would be subject to a Trump administration crack down. And tech companies in China responded. In the first three months of the year, leading Chinese tech firms purchased $16 billion worth of H20 chips, The Information reported last week, stockpiling the components in anticipation there would soon be U.S. export controls on the chip. Despite mounting political pressure to broaden American export controls to cover the H20 chip, the regulatory process has encountered delays, in part because of a lack of staff at the Bureau of Industry and Security (BIS), the Commerce Department office responsible for designing and enforcing such controls, according to a third person familiar with the agency's operations who was also not authorized to speak publicly. BIS has been hobbled by federal cuts and reshuffling under the Trump administration. The country's most senior export control expert, Matthew Boreman, left BIS this year as part of an exodus in February of senior agency staff. President Trump has also moved fast to dismantle and reorganize technology policies implemented by the Biden administration, particularly the CHIPS Act, which authorized $39 billion in subsidies for companies to invest in semiconductor supply chains in the U.S. Last month, Trump ordered the establishment of a new investment "accelerator" office which will take over much of the portfolio of semiconductor investment work from CHIPS Act staff laid off from National Institute of Standards and Technology (NIST, a federal agency hit hard by ongoing federal restructuring efforts.

Nvidia expects to take $5.5bn hit as US tightens AI chip export rules to China

Shares plunge as firm says H20 chip, designed for Chinese market to comply with controls, will now need special licence Nvidia has said it expects a $5.5bn (£4.1bn) hit after Donald Trump's administration barred the chip designer from selling crucial artificial intelligence chips in China, sending shares in one of the US's most valuable companies plunging in after-hours trading. The company said in an official filing late on Tuesday that its H20 AI chip, which was designed specifically for the Chinese market to comply with export controls, would now require a special licence to sell there for the "indefinite future". The US government, which is battling China in the race for AI supremacy, told Nvidia the new rules are designed to address the risk that its products may be "used in, or diverted to, a supercomputer in China". The chip designer now expects to report $5.5bn in charges in its financial quarter that ends on 27 April, because of stocks of H20 chips and sales commitments. Nvidia, whose chips have helped drive huge developments in artificial intelligence technology in recent years, has produced extraordinary returns for its investors. Its shares have risen by more than 1,400% since 2020, making it one of the few businesses in the US worth trillions of dollars. However, the news on Tuesday sent Nvidia shares down about 6% in after-hours trading in the US, which could wipe off billions from its market value at the opening bell on Wednesday. A chipmaker sell-off has already started in Asia, with South Korean semiconductor businesses such as Samsung Electronics and SK Hynix falling by as much as 3% overnight. Shares in the American competitor Advanced Micro Devices also fell 7% in after-hours trading. While so far the chip industry has been exempt from the 10% tariffs that started on 5 April, Trump has said he would announce a levy on imported semiconductors over this week, adding that there could be some flexibility for certain companies in the sector. This week the US Department of Commerce initiated an investigation into the impact of imports of chips and pharmaceuticals on American national security. The US relies heavily on chips imported from Taiwan. Trump placed a 32% tariff on products from the country, although this was suspended along with nearly all his "reciprocal" tariffs last week. On Tuesday Nvidia announced separately that it plans to build up to $500bn (£378bn) worth of AI infrastructure in the US over the next four years, as it begins to bolster its presence in American manufacturing. Nvidia designs its chips but outsources production to contractors such as the Taiwan Semiconductor Manufacturing Company. US officials under the Biden administration first barred Nvidia and other AI chipmakers from selling their most advanced chips to China in October 2022. Chinese officials have since ramped up their own controls on tools and processors needed to build semiconductors.

Nvidia says US chip tariffs mean it faces multi-billion dollar hit

H20 chips were already meant to be optimized for the Chinese market Nvidia is facing a massive $5.5 billion quarterly charge due to new US export restrictions on its H20 AI chips destined for China and other destinations, with company stock taking a fall following the revelation. Starting April 9, the US government mandated a license for Nvidia to export H20 chips to certain countries, with no end date set, marking a costly change for the chipmaker. The affected nations are China (including Hong Kong and Macau) and D5 countries - the United Kingdom, South Korea, Estonia, New Zealand and Israel. "First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves," Nvidia said in a SEC filing. The tech giant noted the government-mandated license "addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China" - Nvidia's fourth-biggest market by sales after the US, Singapore and Taiwan (via CNBC). The H20 chips are less advanced versions of Nvidia's H100/H200 chips, using the 2022 Hopper architecture, designed specifically to comply with now-dated US export restrictions for the Chinese market. In other regions, the company is now shifting its focus to next-generaiton Blackwell chips. Moreover, Nvidia's leaders have spoken out about the effects of the ongoing trade war. "While cloaked in the guise of an 'anti-China' measure, these rules would do nothing to enhance US security," VP of Government Affairs Ned Finkle said during Biden's final days in office, before Trump's tariffs came into effect. Nvidia shares now stand at $112.20, down from a one-year high of $153.13. After spending two short periods of time as the world's most valuable company, Nvidia's market cap of $2.737 trillion now puts it in third position behind Microsoft, with Apple in first place and the only current $3-trillion company (just about).

Nvidia expects $5.5bn revenue hit as US curbs chip exports to China

Nvidia shares have fallen more than 5% in after-hours trading after the US said the chipmaker would require a licence to sell H20 chips to China. Chipmaker Nvidia has warned that tighter US government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion (€4.8bn). In a regulatory filing released late on Tuesday, it said it would require a licence to sell H20 chips to China "for the indefinite future". It added that the controls addressed risks that the products "may be used in or diverted to, a supercomputer in China". This warning came after Nvidia announced on Monday that it would produce its artificial intelligence super computers in the United States for the first time. Nvidia's shares fell 5.2% in after-hours trading, while shares in rival chipmaker AMD dropped around 5.9% after markets closed. Asian technology giants also saw big declines. Testing equipment maker Advantest's shares fell 6.6% in Tokyo, Disco Corp. lost 8% and Taiwan's TSMC dropped 2.5%. Earlier, reports had said the Trump administration had backed away from imposing stricter licencing requirements on the H20 chip. Commerce Department officials were not immediately available for comment early on Wednesday. Nvidia said on Monday it has commissioned more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas -- part of an investment the company said will produce up to half a trillion dollars of AI infrastructure in the next four years. The announcement comes after President Donald Trump and other officials said tariff exemptions on electronics like smartphones and laptops were only a temporary reprieve until officials develop a new tariff approach specific to the semiconductor industry. Trump claimed that decision as a victory for his effort to expand manufacturing in the US.

Nvidia could lose $5.5 billion to charges after new 'indefinite' restriction on exports of beefy AI GPUs to China

Amidst all the talk of tariffs on products entering the US, it can be easy to forget there are strict regulations surrounding chips going out of the country, too. Lest we forget about such export restrictions, Nvidia has just revealed (via the Associated Press) that new ones are expected to cost the company a lot of money. This info was spotted in an SEC filing, in which Nvidia says that "first quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves." According to Nvidia, this is off the back of the US government informing the company on April 9 that a license is required for export to China "H20 integrated circuits and any other circuits achieving the H20's memory bandwidth, interconnect bandwidth, or combination thereof." Following this, again according to Nvidia, "On April 14, 2025, the USG informed the Company that the license requirement will be in effect for the indefinite future." The H20 is essentially a modified version of the H100 GPU, a powerful 'Grace Hopper' architecture that sits on the datacentre side of the aisle just across from 'Ada Lovelace' RTX 40-series processors. Both of these have been succeeded by 'Blackwell' architecture chips, but Hopper chips are still incredibly powerful and populate many of the biggest tech companies' server racks. The H20 was made to comply with China export restrictions that started to come into effect in 2022 and later restricted export of powerful chips such as the H100 and even less powerful ones such as the H800 and A800. Thus the scaled-back H20 was born, and since then it's been the most powerful AI chip that China's been able to get its hands on. Now, according to Nvidia's SEC filing, it looks like even this chip will no longer be allowed to be exported to China without license from the US government. And clearly the China H100 market must have been a big one if Nvidia is claiming $5.5 billion charges associated with the new regulations. According to Reuters, "two sources familiar with the matter" claim that Nvidia didn't warn some Chinese customers about these new export rules. This apparently meant that some companies were expecting H20 deliveries by the end of the year. Regulations such as these are no joke, either, as we've already seen breaking them can risk some serious repercussions. TSMC, for instance, might be fined over $1 billion for allegedly breaking export rules after one of its chips was found in a Huawei processor. Still, while the $5.5 billion charges surely must sting, that's nothing compared to the amount that Nvidia is planning on investing in US-based chip production. Just a few days ago, the company announced plans to invest $500 billion in "AI infrastructure" in the US. With these new reported export rules and the looming threat of semiconductor tariffs, the chip industry writ large -- not to mention, of course, the burgeoning and booming AI industry -- is in uncertain waters. And while PC gaming tech is a little downstream from all this, it's most definitely the same stream. Here's hoping that after this $5.5 billion Nvidia will still has the money to pump into more RTX 50-series stocks.

NVIDIA to Face $5.5 billion Charge for H20 AI chips exports to China | AIM Media House

The US government has potentially charged NVIDIA $5.5 billion for exporting H20 artificial intelligence (AI) chips to China without a license, one of the key markets, the chip maker announced in an exchange filing earlier this week. Amidst the trade war between the US and China over the supply chain of semiconductors and AI chips, the US export control has tried to restrict components to get ahead in the AI race. On 9 April, the Trump Administration informed NVIDIA that the company must license its H20-related chip exports to China. "The US government indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China," NVIDIA said in its Securities and Exchange Commission filing. NVIDIA allegedly began modifying the chips after former US President Joe Biden signed the CHIPS and Science Act in August 2022. The act provided $52.7 billion in funding for investments in the country's semiconductor industry. However, in October 2022, the US imposed export controls restricting US companies from exporting semiconductor components to China. Subsequently, NVIDIA reportedly modified one of its primary AI chips, the H100, to stay within the government limits. Since his appointment, US President Trump has pushed to reduce overreliance on foreign electronic components. The government is investigating "vulnerabilities in supply chains, the economic impact of foreign market distortions, and potential trade remedies to ensure a secure and sustainable domestic supply of these essential materials," the White House said on its website. Currently, the government is implementing a license requirement to export its AI H20 chips to five other digital nations, including Israel, which will be "in effect for the indefinite future." This comes after NVIDIA's announcement on Monday that it plans to produce its first AI supercomputers domestically. AIM reported that the US government imposed steep tariffs on Chinese imports in early April and later exempted tariffs on smartphones, computers and other electronic parts, including chips. "When the President issued his reciprocal tariffs, our government at the time specifically said that chips and semiconductors, critical components of our national security, would be dealt with through a separate Commerce authority known as a 232," White House deputy chief of staff Stephen Miller said on 13 April. "That was always the plan because those components are so essential to our national security. We need to have a separate process for dealing with how to reshore those essential industries ... There are no exemptions."

Chip stocks update: Nvidia, AMD, TSMC, Intel share prices fall after Trump's export license demand

Shares in Nvidia Corporation and other chip technology companies are down in premarket trading this morning after Nvidia confirmed that it would take a significant financial hit to cover costs associated with a newly required export license so it can ship some of its latest chips outside of the United States. Here's what you need to know about the new requirement and its effect on tech stocks. Yesterday, AI chipmaking giant Nvidia revealed that it will record a $5.5 billion charge this year related to its H20 chips, sending the stock down in premarket trading this morning. Nvidia made the revelation about a week after the Trump administration added new export license requirements to the H20. Nvidia initially revealed that information in a Form 8-K filing with the U.S. Securities and Exchange Commission (SEC) dated April 9. In that filing, Nvidia revealed that the U.S. government now requires Nvidia to obtain an export license to export its H20 chips to China and select other countries. Due to this, Nvidia expects to incur about $5.5 billion in costs related to "inventory, purchase commitments, and related reserves" of the H20.

NVIDIA can still sell H20 AI GPUs to China after CEO Jensen Huang has dinner at Mar-a-Lago

TL;DR: The US government reversed its plan to restrict NVIDIA's H20 AI GPU exports to China after CEO Jensen Huang's meeting with President Trump. This decision followed NVIDIA's promise to invest $200 billion in US AI infrastructure. The move is seen as a significant win for the US, as China remains reliant on NVIDIA chips due to its limited domestic production capabilities. The US government has just reversed its plans to restrict exports of NVIDIA's H20 AI GPU to China, after CEO Jensen Huang had dinner at Mar-a-Lago with President Trump and his administration. In a new report from NPR that cites two sources, the newly-tweaked US export controls on the H20 AI GPU had been in the works for a few months now, and that the change in plans kicked off after NVIDIA promised the Trump administration that it would be investing around $200 billion into new US investments in AI data centers. NVIDIA CEO Jensen Huang recently attended a dinner at Mar-a-Lago, with the Trump administration reversing its restrictions on the H20 AI GPU entering China. Not only that, but the Trump administration also had planned to roll out additional restrictions, but they too have been put on hold according to "two sources with knowledge of the plan who were not authorized to speak publicly" adds NPR. The Trump administration's decision to allow Chinese companies to continue purchasing NVIDIA H20 AI GPUs is a "major victory" for the United States, says Chris Miller, a Tufts University history professor and semiconductor expert. Miller added: "Even though these chips are specifically modified to reduce their performance thus making them legal to sell to China - they are better than many, perhaps most, of China's homegrown chips. China still can't produce the volume of chips it needs domestically, so it is critically reliant on imports of NVIDIA chips". We don't know if Jensen Huang spoke directly with President Trump at Mar-a-Lago, but we do know that NVIDIA promised to invest $200 billion into US-based investments into AI infrastructure on American soil.

Nvidia shares fall after it says US controls on exports of AI chip will cost it $5.5B

BANGKOK -- Shares in computer chip makers slumped in after-hours trading and in Asia after Nvidia said tighter U.S. government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion. The company, which announced Monday that it will produce its artificial intelligence super computers in the United States for the first time, said the government told it that its H20 integrated circuits and others of the same bandwidth would be subject to the controls for the "indefinite future." In a regulatory filing, it said the government said the controls addressed risks that the products "may be used in or diverted to, a supercomputer in China." Nvidia's shares fell 6.3% in after-hours trading. Shares in rival chip maker AMD dropped 7.1% after markets closed. Asian technology giants also saw big declines. Testing equipment maker Advantest's shares fell 6.7% in Tokyo, Disco Corp. lost 7.6% and Taiwan's TSMC dropped 2.4%. Earlier, reports had said the Trump administration had backed away from imposing stricter licensing requirements on the H20 chip. Commerce Department officials were not immediately available for comment early Wednesday. Nvidia said Monday it has commissioned more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas -- part of an investment the company said will produce up to half a trillion dollars of AI infrastructure in the next four years. The announcement comes after President Donald Trump and other officials said tariff exemptions on electronics like smartphones and laptops were only a temporary reprieve until officials develop a new tariff approach specific to the semiconductor industry. Trump claimed that decision as a victory for his effort to expand manufacturing in the U.S.

Chipmaker stocks slide as Nvidia faces $5.5B charge with US restrictions

Nvidia shares fell 6% after-hours after revealing it faces expensive restrictions on exporting its AI chips to China, which could leave it facing $5.5 billion in charges. Chipmaking giants Nvidia and AMD have seen their share prices slide in after-hours trading after Nvidia said US restrictions on artificial intelligence chips to China would cause it to face major costs. Nvidia stated in an April 15 regulatory filing that it is expecting around $5.5 billion in charges associated with its AI chip inventory due to significant export restrictions imposed by the US government affecting the company's business with China. Nvidia said that the US government informed it on April 9 that export licenses are now required for its popular H20 integrated circuits and any chips with similar bandwidth capacity. "First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves." The restrictions specifically mention China, Hong Kong and Macau, and the government indicated that the license requirement "addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China." The H20 is the most advanced AI chip Nvidia can export to China under previous export rules. Government officials have been calling for stronger export controls on the chip, which was reportedly used to train models from China-based AI startup DeepSeek. The Trump administration initially put the restrictions on hold following President Donald Trump's meeting with Nvidia CEO Jensen Huang earlier this month, NPR reported. Related: Nvidia's stock price forms 'death cross' -- Will AI crypto tokens follow? On April 14, Nvidia announced that it would spend hundreds of millions of dollars over the next four years manufacturing some AI chips in the US. However, that has not prevented the stock slump in light of the latest filing and predicted impact on its upcoming revenue report. "Truly no company is safe from tariffs," commented the Kobeissi Letter. Nvidia's first quarter of fiscal year 2026 ends on April 27. Shares in Nvidia (NVDA) fell 6% in after-hours trading on April 15 to $105, according to Google Finance. Nvidia's share price is down 22% so far this year, slumping in a wide market rout caused by Trump's escalating trade war and tariff threats. Rival chipmaker Advanced Micro Devices (AMD) saw a similar share price drop, falling more than 7% to $88.55 in after-hours trading. AMD shares have declined by more than 25% since Jan. 1.

NVIDIA just lost $5.5 billion to U.S. export rules

NVIDIA is bracing for a $5.5bn hit after the US government tightened export rules to China, requiring the chipmaker to obtain licenses to export its popular H20 AI chip, according to BBC. The new rules, announced last week, are part of an escalating trade war between the US and China, with both countries imposing steep trade tariffs on each other. NVIDIA shares dropped almost 6% in after-hours trading following the news. The company stated that the license requirement "will be in effect for the indefinite future" and is aimed at preventing covered products from being used in or diverted to a supercomputer in China. The $5.5bn hit estimated by NVIDIA is associated with H20 products for inventory, purchase commitments, and related reserves. Marc Einstein from Counterpoint Research consultancy believes NVIDIA can bear the cost but notes that this move may be a negotiating tactic. Nvidia starts manufacturing AI chips for the US in Texas Rui Ma, founder of the Tech Buzz China podcast, expects the US and China AI semiconductor supply chains to be "fully decoupled" if restrictions stay in place, adding that Chinese customers may avoid dependence on US chips due to an oversupply of data centers in China. NVIDIA's AI chips have been a key focus of US export controls amid the ongoing tech supremacy race between the US and China.

Nvidia to Record $5.5B Charge as US Cracks Down on Chip Exports to China

Nvidia (NVDA) said it expects to take a $5.5 billion charge in its fiscal 2026 first-quarter results after the U.S. limited exports of its artificial intelligence (AI) chips to China. The news, the latest salvo in an escalating trade war between Washington and Beijing, sent the firm's shares tumbling roughly 6% in premarket trading Wednesday. The company said in a regulatory filing late Tuesday that it was informed by the U.S. government on April 9 that it would be required to have an export license "for the indefinite future" to sell its H20 chips to China. Nvidia said the license requirement is aimed at addressing the risk that the chip would be "used in, or diverted to, a supercomputer in China." The chip is less powerful than its newer ones and tailored to meet existing export limits for the Chinese market. Nvidia's Q1 results, which are expected May 28, are set to include the $5.5 billion charge "associated with H20 products for inventory, purchase commitments, and related reserves," it said. According to Morningstar Research, "China has shrunk to about 10% of Nvidia's revenue from 20%, and we now expect it to go to close to zero." The New York Times reported that a spokesman for the U.S. Commerce Department said "that the administration was issuing new export licensing requirements for the Nvidia H20; a chip from Advanced Micro Devices, the MI308; and their equivalents." AMD (AMD) shares also were down about 6% in premarket trading.

Trump administration backs off Nvidia's H20 chip crackdown after Mar-a-Lago dinner: Report

The Trump administration has reversed course on plans to restrict exports of Nvidia's H20 artificial intelligence chips to China after CEO Jensen Huang attended a Mar-a-Lago dinner last week, NPR reported on Wednesday. The planned American export controls on the chips - the most advanced AI processor legally available in China under U.S. export controls - had been in the works for months, NPR reported, citing two sources, and were ready to be implemented as soon as this week. The change in plans came after Nvidia promised the Trump administration new U.S. investments in AI data centers, the NPR report said. The White House and Nvidia did not immediately respond to Reuters' requests for comment. US President Donald Trump's administration was considering tightening restrictions on the AI leader's sales of its H20 chips designed for the China market, Reuters had reported in January. The idea to restrict shipments of those chips to China has been under consideration since Democratic former President Joe Biden's administration. In February, Reuters exclusively reported a surge in orders for the H20, driven by booming demand for Chinese startup DeepSeek's low-cost AI models. Chinese companies, including ByteDance, Alibaba Group and Tencent Holdings , have placed at least $16 billion in orders for Nvidia's H20 server chips in the first three months of the year, the Information reported last week. Two U.S. lawmakers, Republican John Moolenaar and Democrat Raja Krishnamoorthi, called for more restrictions on exports of Nvidia's artificial intelligence chips in late January.

Nvidia faces $5.5 billion charge as US restricts chip sales to China

While the H20 has lower computing capabilities than other Nvidia chips, its ability to connect to memory chips and other computing chips at high speeds is still high. Those memory and connectivity aspects could make the H20 useful in building supercomputers in China, and the US has placed restrictions on selling chips for use in supercomputers in China since 2022.Nvidia on Tuesday said it would take $5.5 billion in charges after the US government limited exports of its H20 artificial intelligence chip to China, a key market for one of its most popular chips. Nvidia's AI chips have been a key focus of US export controls as US officials have moved to keep the most advanced chips from being sold to China as the US tries to keep ahead in the AI race. After those controls were implemented, Nvidia began designing chips that would come as close as possible to US limits. Nvidia shares were down about 6% in after-hours trading. The H20 is currently Nvidia's most advanced chip for sale in China and is central to its efforts to stay engaged with China's booming AI industry. Chinese companies including Tencent , Alibaba and TikTok parent ByteDance had been ramping up orders for H20 chips due to booming demand for low-cost AI models from startup DeepSeek, Reuters reported in February. While the H20 chip is not as fast at training AI models as Nvidia's chips for sale outside China, it is competitive with some of those chips at a step known as inference, where AI models serve up answers to users. Inference is fast becoming the biggest part of the AI chip market. Nvidia CEO Jensen Huang last month argued that Nvidia is well positioned to dominate that shift. But Nvidia on Tuesday said that the U.S. government is restricting H20 sales to China because of the risk that the chips could be used in a supercomputer. While the H20 has lower computing capabilities than other Nvidia chips, its ability to connect to memory chips and other computing chips at high speeds is still high. Those memory and connectivity aspects could make the H20 useful in building supercomputers in China, and the U.S. has placed restrictions on selling chips for use in supercomputers in China since 2022. The Institute for Progress, a nonpartisan think tank in Washington, D.C., on Tuesday argued for restricting the H20 chips, writing that Chinese firms were likely already building such systems. "At least one of the buyers, Tencent, has already installed H20s in a facility used to train a large model, very likely in breach of existing controls restricting the usage of chips in supercomputers exceeding certain thresholds. DeepSeek's supercomputer used to train their V3 model is also likely in breach of the same restrictions," the group wrote. Nvidia said on Tuesday that the U.S. government informed it on April 9 that the H20 chip would require a license to be exported to China and on April 14 told Nvidia those rules would be in place indefinitely. It is unclear how many, if any, of those licenses the U.S. government might grant. Nvidia declined to comment beyond its filing. The U.S. Department of Commerce, which oversees U.S. export controls, did not immediately return a request for comment. The $5.5 billion in charges are associated with H20 products for inventory, purchase commitments and related reserves, Nvidia said. The news comes as Nvidia said on Monday it was planning to build AI servers worth as much as $500 billion in the U.S. over the next four years with help from partners such as TSMC, in step with the Trump administration's push for local manufacturing.

Nvidia kept some China customers in the dark about new US chip clampdown, sources say

Nvidia reportedly didn't warn major Chinese customers about new U.S. export rules for its H20 AI chip, leading to potential delivery disruptions. The U.S. government informed Nvidia on April 9th, restricting H20 shipments to limit China's access to advanced semiconductors. This move could benefit Chinese companies like Huawei, potentially boosting their AI chip development.Nvidia did not warn at least some major customers in advance about new U.S. export rules it was told about a week ago requiring it to obtain licenses to sell its China-focused artificial intelligence chip, according to two sources familiar with the matter. The U.S. chipmaker disclosed on Tuesday that American officials had informed the company on April 9 that its H20 chip would require an export license for sales to China. The move to restrict H20 shipments marks Washington's latest effort to limit China's access to advanced semiconductors, as the United States seeks to maintain its edge in AI technology. Major Chinese cloud companies were still anticipating H20 deliveries by year-end, unaware of the impending restrictions, according to the two sources, who said Nvidia's China sales team also did not appear to be informed ahead of the public announcement. They spoke on condition of anonymity because of the sensitivity of the matter. Nvidia declined to comment. The export controls threaten Nvidia's business in China, one of its largest markets. Nvidia had secured $18 billion of H20 orders since the start of the year, according to one of the two sources and a third source. China generated $17 billion in revenue, or 13% of Nvidia's total sales, in its last fiscal year that ended on January 26. Nvidia shares fell 6% in after-hours trading on Tuesday after it said it would take up to $5.5 billion of charges in the first quarter ending April 27 due to the licensing requirement, which the U.S. government told it on Monday would be indefinite. The charges are associated with inventory, purchase commitments, and related reserves for H20 products, the company said. Chinese tech giants including Tencent, Alibaba and ByteDance, the owner of TikTok, had increased orders for H20 chips amid surging demand for affordable AI models from companies like startup DeepSeek, Reuters reported in February. Alibaba, ByteDance and Tencent did not immediately respond to requests for comment. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. The restrictions on H20 could benefit Chinese AI chipmakers, particularly Huawei, which offers competing products to Nvidia's lineup, analysts said. "By restricting the H20 system, U.S. regulators are effectively pushing Nvidia's Chinese customers toward Huawei's AI chips," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. "Huawei's chip design and software capabilities are likely to advance quickly as it gains more customers and development experience," Chiou added.

From AI darling to meme stock: Jim Cramer says you can't own Nvidia like you used to after Trump curbs trigger $5.5 billion fallout

Nvidia faced a $5.5 billion earnings hit and saw shares drop after new US export restrictions blocked shipments of its H20 AI chips to China. This move prompted CNBC's Jim Cramer to suggest trimming Nvidia from portfolios. The restrictions impact the company's major Chinese market, with analysts predicting further challenges.Nvidia Corp took a $5.5 billion earnings hit and saw its shares tumble after disclosing late Tuesday that new US export restrictions will indefinitely block shipments of its H20 artificial intelligence chips to China -- a development that prompted CNBC's Jim Cramer to declare the company had become a "meme stock" and should be trimmed from portfolios. The Silicon Valley chipmaker said in a regulatory filing that it was notified by US officials on April 9, and again on April 14, that its H20 semiconductors -- already designed to comply with prior Biden-era export controls -- will now require special licences due to concerns they could be used in Chinese supercomputers. The US Department of Commerce confirmed the new licensing rules late Tuesday, citing national and economic security. Nvidia shares dropped 6% in after-hours trading, and were down 7% in Wednesday's pre-market session. The Nasdaq 100 futures slipped more than 2% as the news reverberated across global tech markets. Shares in Nvidia rival AMD fell 7%, while chip equipment maker ASML lost 6%. AI chip buyers in Hong Kong, including Alibaba, Baidu, and Tencent, also declined. The $5.5 billion charge relates to "inventory, purchase commitments, and related reserves" for H20 products in the quarter ending April 27, the company said. Jim Cramer, the outspoken host of CNBC's Mad Money, weighed in on the news, taking to social media platform X to issue a warning. "As I said in my painful Sunday think piece for club members, Nvidia has become a meme stock and it has to be cut back," Cramer wrote. "You can't own Nvidia like you used to, meaning you have to trim, and I said I'm going to have to sell some... It's a different world," he said in his show, answering callers' stock questions. Nvidia introduced the H20 chip last year to navigate restrictions that banned the export of its most advanced GPUs to China. Despite being a pared-down product, the H20 accounted for $12 billion of the company's $17 billion in China revenue over the past year, according to Bernstein analysts. Reuters reported the chip had received $18 billion in orders this year alone. Yet Nvidia did not warn at least some of its Chinese customers about the new restrictions in advance, according to a Reuters exclusive citing sources familiar with the matter. Cloud companies in China, including Tencent and Alibaba, were reportedly expecting deliveries of the H20 chip by year-end. The export curbs are part of the Trump administration's broader effort to stifle China's technological advancements. The White House has ramped up tariffs on Chinese goods to as high as 145% and is pursuing a national security probe that could lead to new levies on semiconductors. Commerce officials confirmed that AMD's MI308 and similar chips are also subject to the new licensing regime. The administration said the controls aim to prevent Chinese access to semiconductors that could be used in military applications such as hypersonic and nuclear weapons development. The Chinese embassy in Washington did not comment. Nvidia's exposure to geopolitical flashpoints has grown alongside its meteoric rise in the AI boom, which briefly saw it crowned the world's most valuable company last year. On Monday, the company announced plans to invest up to $500 billion in U.S. AI infrastructure, partnering with Taiwan Semiconductor Manufacturing Co. and Foxconn. But with Washington's crackdown intensifying and Beijing encouraging domestic alternatives, analysts warn Nvidia could face an extended freeze-out in China. The company's China-focused H20 was already being targeted by new energy-efficiency rules, potentially favoring local players like Huawei. As markets brace for further turbulence, uncertainty remains over whether Nvidia will receive any export licences or if the H20 chip line will be effectively wiped out in China -- one of its most critical markets, accounting for 13% of total revenue in the last fiscal year. Also read | European shares fall after Nvidia, ASML signal mounting corporate pain (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

NVIDIA's China H20 AI GPUs Spared By Trump Admin In Return For US AI Data Center Investments - Report

The Trump administration might have decided to spare AI chip designer NVIDIA's H20 GPUs from being targeted by new rules to stop their sales to China. NVIDIA's GPUs were at the center of 2025's first major stock market selloff in January when the firm lost close to $600 billion in market value after Chinese AI startup DeepSeek's AI models demonstrated comparable performance to Western products despite using fewer resources. Since then, NVIDIA's GPUs have been at the center of attention as sources have speculated that the firm's China-specific H20 GPUs might be on the Trump administration's radar for additional sanctions. According to sources quoted by NPR, NVIDIA CEO Jensen Huang's meeting with President Trump last week was fruitful. The White House has now decided not to impose sanctions prohibiting NVIDIA from selling its H20 GPUs to China. The H20 chips are a custom variant designed for China, and they are the most technologically advanced NVIDIA product that can be sold to the country. NPR outlines that the Trump Administration's H20 sanctions were in the advanced stages and could have been announced as soon as this week. NVIDIA's shares bled last month after media reports highlighted a year-old Chinese document requiring data centers to be environmentally friendly. The selloff indicated the reliance on Chinese revenue for the firm's income statement. NVIDIA's shares are up by 5.9% after having lost 7.6% since the President announced his tariffs last week. As to what made the Trump administration back down, one source claims that NVIDIA promised new investments in US AI data centers. Since taking charge, President Trump has been eager to attract as much domestic investment as possible as part of his efforts to build new plants and factories in America. NVIDIA's chip supplier, Taiwan's Taiwan Semiconductor Manufacturing Company (TSMC), announced a $100 billion investment package earlier this year as part of these efforts. Spokespersons for the White House and the Commerce Department did not respond to NPR, while NVIDIA declined to comment. NVIDIA's H20 GPUs have reportedly been in shortage in China as domestic players stocked up this year in anticipation of the new rules. A client notice from a server company that surfaced last month claimed that the chips might be in short supply. The H20 GPUs were also used by DeepSeek to train its AI models, with the firm relying on a deeper-level programming language to control their performance over NVIDIA's standard CUDA programming language. The H20 GPUs are the most advanced AI GPUs that Chinese firms can lay their hands on, with domestic firms such as Huawei and domestic chip manufacturers such as SMIC being significantly behind their Western and Taiwanese counterparts when it comes to chip design and manufacturing.

Jensen Huang Turned The Tide With Mar-A-Lago Dinner? Trump Administration Reportedly Backs Down On H20 Chip China Export Restrictions - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation's NVDA stock has dropped 17.34% year-to-date, but the company has now reportedly seen a reversal of planned export restrictions on its H20 artificial intelligence chips. What Happened: The Donald Trump administration had been considering a ban on the export of Nvidia's H20 AI chips to China, which would have been the most advanced AI processors legally available to Chinese companies. These restrictions had been in the works for months and were expected to be implemented soon. However, after Nvidia CEO Jensen Huang met with Trump at his Mar-a-Lago estate last week, the administration has reversed course, reported NPR, citing two sources with knowledge of the plan. See Also: Vietnam, A Hub For US Tech Giants Like Apple And Nvidia, Wants To Talk Trade After Trump Pauses 46% Tariff Nvidia also committed to increasing its U.S. investments in AI data centers, the report said. Why It Matters: Previously, it was reported that Chinese tech giants Tencent Holdings TCEHY, Alibaba Group BABA, and ByteDance have ramped up their orders for Nvidia's H20 AI chips, fueled by soaring demand for computing power driven by the rise of DeepSeek's affordable AI models. These companies have reportedly ordered more than $16 billion worth of Nvidia's H20 server chips during the first quarter of 2025. Last month, it was reported that Nvidia faced challenges due to chip shortages and sanctions disrupting supply. Chinese server maker H3C warned of a potential Nvidia H20 chip crisis, with inventories nearly depleted. Chinese companies are actively seeking ways to lessen their dependence on Nvidia. In March, Qingcheng.AI unveiled "Chitu," a framework optimized for domestically produced chips. Huawei Technologies has also made notable strides in developing its own AI chips, with Huang recognizing the company as a serious competitor. Still, China continues to play a vital role in Nvidia's business. In 2024, the company earned $12 billion from the Chinese market -- doubling Huawei's sales of its Ascend 910B AI chips. Price Action: Nvidia shares jumped 18.72% on Wednesday but dipped 1.53% in after-hours trading, reaching $112.59 at the time of writing, per Benzinga Pro data. According to Benzinga Edge Stock Rankings, Nvidia (NVDA) holds a strong growth rating of 94.83%. You can view the full comparison with other companies by clicking here. Image via Shutterstock Read Next: Microsoft Fires Employee Protestors Who Disrupted 50th Anniversary Event: 'You Have Shown No Remorse For The Effect That Your Actions Have' Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$108.308.99%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum89.76Growth73.12Quality47.16Value83.63Price TrendShortMediumLongOverviewNVDANVIDIA Corp$112.5916.9%TCEHYTencent Holdings Ltd$56.254.19%Got Questions? AskHow will Nvidia benefit from the export shift?Which Chinese tech giants will lead AI chip demand?What impact on AI chip stocks due to export changes?Could HUAWEI compete better against Nvidia?How might Tencent leverage AI advancements?What are the implications for AI data center investments?Will Alibaba increase orders for Nvidia chips?Which chip manufacturers could benefit from Nvidia's challenges?How will DeepSeek's models affect AI chip demand?What are the long-term effects on US-China tech relations?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia To Take $5.5 Billion Hit Over China Chip Export Restrictions -- But Top Analyst Dan Ives Not Overly Concerned: 'All Part Of The High Game Of Poker' - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA will take a multibillion-dollar hit tied to U.S. export restrictions, but a top analyst says the long-term story remains intact. What Happened: On Tuesday, Nvidia said it would take a $5.5 billion charge this quarter related to halted shipments of its H20 graphics processing units to China and several other markets. The announcement comes after the U.S. government informed the company on April 9 that it would now require a license to export those chips. According to Benzinga Pro data, shares of Nvidia fell 6.33% in after-hours trading on Tuesday. See Also: Netflix Debuts OpenAI-Backed Search Engine That Lets You Discover Movies And TV Shows Based On Emotions, Not Just Titles Wedbush Securities analyst Dan Ives weighed in on the development, urging investors to maintain perspective. "The Nvidia China restriction news that just hit will put pressure on shares and it's a concern...BUT this is all part of the high game of poker going on between U.S. and China," he said in a post on X, formerly Twitter. "I am not overly concerned by this news despite the headline," he added. "Nvidia remains caught in the tariff spiderweb between [the] U.S. and China. Street knows this. Need to look thru this period of vol and news and see [the] forest thru trees. Nvidia only chip in world fueling AI Revolution..demand." Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It's Important: The latest Nvidia licensing mandate seems to mark another escalation in the ongoing trade tensions with China. While President Donald Trump recently held off on imposing reciprocal tariffs on most nations, he increased tariffs specifically targeting China. In response, China retaliated over the weekend with tariffs as high as 125% on U.S. products. Earlier, Goldman Sachs warned that a potential U.S.-China decoupling could spark a massive $2.5 trillion market sell-off. In February, it was reported that Chinese tech heavyweights Tencent Holdings TCEHY, Alibaba Group Holdings BABA, and ByteDance have ramped up their orders for Nvidia's H20 AI chips, driven by soaring demand for AI computing power fueled by the rise of DeepSeek's cost-effective AI models. The DeepSeek R1 AI model, reportedly developed for under $6 million, has outperformed leading U.S. models -- including those from OpenAI. In March, Chinese server manufacturer H3C flagged a potential shortage of Nvidia's H20 chips. The company also warned that supply plans beyond April 20 remain uncertain due to shifting raw material policies, logistical disruptions, and manufacturing difficulties. Price Action: Nvidia shares are down 18.88% so far this year but have still climbed 30.47% over the past 12 months, as per Benzinga Pro data. According to Benzinga Edge Stock Rankings, the company holds a strong growth score of 94.82%. Click here to compare it with Alibaba, Tencent, and other major players. Photo Courtesy: Evolf on Shutterstock.com Read More: 'Most People Don't Have The Balls To Do It,' Says Mark Cuban, Praising Musk For Going 'All In' With His Own Money For His Startups Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$109.90-3.57%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum93.13Growth73.10Quality50.69Value80.80Price TrendShortMediumLongOverviewNVDANVIDIA Corp$105.10-5.07%TCEHYTencent Holdings Ltd$58.79-0.44%Got Questions? AskWhich semiconductor stocks could benefit from AI demand?How might Chinese tech firms react to chip shortages?What impact will U.S.-China trade tensions have on tech stocks?Are there alternative chip manufacturers gaining traction?Could Nvidia's competitors see increased demand from China?What investments could capitalize on AI technology growth?Which ETF focused on tech might benefit from Nvidia's situation?How will tariffs on U.S. goods impact investment strategies?Is there a potential for market volatility to create buying opportunities?What role will DeepSeek's AI models play in market dynamics?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia's Reported Failure To Inform Chinese Clients On New Chip Restrictions Could Give Huawei a Strategic Edge - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corp. NVDA has reportedly not communicated to some of its major Chinese customers about the new U.S. export rules affecting its AI chip. What Happened: U.S. officials informed Nvidia on April 9 that its H20 chip would now require an export license for sales to China. Despite this, the chipmaker did not share this crucial information with some of its key customers in China, who were anticipating H20 deliveries by year-end, reported Reuters. The new export rules are a part of Washington's ongoing efforts to restrict China's access to advanced semiconductors and maintain U.S. dominance in AI technology. These restrictions could significantly affect Nvidia's business in China, one of its largest markets. A spokesperson for Nvidia declined to comment when contacted by Benzinga. Since the start of the year, the Jensen Huang-led company has secured orders worth $18 billion for its H20 chips. Chinese tech giants Tencent Holdings Ltd. TCEHY, Alibaba Group Holding Ltd. BABA, and ByteDance Ltd., the owner of TikTok, had increased orders for H20 chips due to the rising demand for affordable AI models. SEE ALSO: Peter Schiff Says Since Trump Was Elected Bitcoin Advocates Took A 180 Turn On US Economy, But Critics Say Economist Mistaken Why It Matters: The new export rules are expected to hit Nvidia's bottom line. The chipmaker is set to take a $5.5 billion charge this quarter due to halted shipments of its H20 GPUs to China and several other markets. The H20 is the main chip that Nvidia is legally allowed to sell in China, introduced following the implementation of the latest U.S. export restrictions in October 2023. According to analysts, Chinese AI chipmakers, especially Huawei, could benefit from the limitations placed on H20 as it offers alternatives to Nvidia's product range. Meanwhile, despite the potential semiconductor industry slowdown due to tariff uncertainties, Nvidia is expected to hold its ground. According to a recent analysis by Redburn Atlantic, Nvidia's potential to endure the industry's turbulence remains strong. The firm maintains a buy rating on Nvidia and has named it a 'top pick' for investors once the sector's turbulence subsides. Benzinga's Edge Rankings highlight strong momentum and growth rankings for Nvidia in the 77th and 95th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks. READ MORE: Tesla Bull Ross Gerber Says Elon Musk 'Doesn't Care' About Company Anymore, Blames Focus On Other Ventures For EV Maker's Slump Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$109.74-2.26%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum93.13Growth73.10Quality50.69Value80.80Price TrendShortMediumLongOverviewNVDANVIDIA Corp$105.00-6.42%TCEHYTencent Holdings Ltd$58.79-%Got Questions? AskWhich Chinese tech giants will face delays?How will Nvidia's stock react to export limits?What impact on AI chip demand from new rules?Could Huawei gain market share from Nvidia?Which semiconductor companies may benefit from restrictions?How will tariffs affect AI technology in the US?Are there investment opportunities in alternative AI chips?What strategies will Nvidia adopt post-restrictions?Which investors are betting on Nvidia's recovery?How could AI startups leverage Nvidia's challenges?Powered ByMarket News and Data brought to you by Benzinga APIs

Top Tech News: NVidia Sales Restriction, Assiduous Raising Funds And More

Nvidia Faces $5.5 Billion Charge Amid US Export Restrictions on AI Chips to China Nvidia announced a $5.5 billion charge following new US government restrictions on exporting its H20 AI chips to China. The H20, designed to comply with earlier export controls, is now restricted due to concerns over its potential use in Chinese supercomputers. Major Chinese tech firms like Tencent, Alibaba, and ByteDance had increased orders for the H20, making it central to Nvidia's China strategy. The restrictions led to a 6% drop in Nvidia's shares in after-hours trading.

Tech shares fall after Nvidia says new U.S. controls on exports of AI chip will cost it US$5.5 billion

Shares in computer chip makers slumped early Wednesday after Nvidia said tighter U.S. government controls on exports of computer chips used for artificial intelligence will cost it an extra US$5.5 billion. The company, which announced Monday that it will produce its artificial intelligence super computers in the United States for the first time, said the government told it that its H20 integrated circuits and others of a similar bandwidth would be subject to the licensing requirements for the "indefinite future." In a regulatory filing, it said the government said the controls addressed risks that the products "may be used in or diverted to, a supercomputer in China." Nvidia's shares fell 5.8% in pre-market trading. Shares in rival chip maker AMD dropped 6.5%. Asian technology giants also saw big declines. Testing equipment maker Advantest's shares fell 6.7% in Tokyo, Disco Corp. lost 7.6% and Taiwan's TSMC dropped 2.4%. The news of the new controls came after Sen. Elizabeth Warren urged U.S. Commerce Secretary Howard Lutnick to impose restrictions on exports of Nvidia's H20 and other advanced AI chips to China. "I write with great concern regarding reports that the Commerce Department has paused its plan to restrict the export of powerful advanced AI chips like Nvidia's H20 to the People's Republic of China (PRC)," Warren wrote in a letter posted on the website of the U.S. Senate's Committee on Banking, Housing and Urban Affairs. It said former U.S. President Joe Biden had not included the H20 chips in controls his administration placed on exports of advanced AI chips. The emergence of China's DeepSeek AI chatbot in January renewed concerns over how China might use the advanced chips to help develop its own AI capabilities. U.S. Commerce Department officials were not immediately available for comment early Wednesday. Nvidia said Monday it has commissioned more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas -- part of an investment the company said will produce up to half a trillion dollars of AI infrastructure in the next four years. The announcement came after U.S. President Donald Trump and other officials said tariff exemptions on electronics like smartphones and laptops were only a temporary reprieve until officials develop a new tariff approach specific to the semiconductor industry. Trump claimed Nvidia's decision as a victory for his effort to expand manufacturing in the U.S.

Trump administration backs off Nvidia's H20 chip crackdown after Mar-a-Lago dinner, NPR reports

(Reuters) - The Trump administration has reversed course on plans to restrict exports of Nvidia's H20 artificial intelligence chips to China after CEO Jensen Huang attended a Mar-a-Lago dinner last week, NPR reported on Wednesday. The planned American export controls on the chips -- the most advanced AI processor legally available in China under U.S. export controls -- had been in the works for months, NPR reported, citing two sources, and were ready to be implemented as soon as this week. The change in plans came after Nvidia promised the Trump administration new U.S. investments in AI data centers, the NPR report said. The White House and Nvidia did not immediately respond to Reuters' requests for comment. U.S. President Donald Trump's administration was considering tightening restrictions on the AI leader's sales of its H20 chips designed for the China market, Reuters had reported in January. The idea to restrict shipments of those chips to China has been under consideration since Democratic former President Joe Biden's administration. In February, Reuters exclusively reported a surge in orders for the H20, driven by booming demand for Chinese startup DeepSeek's low-cost AI models. Chinese companies, including ByteDance, Alibaba Group and Tencent Holdings, have placed at least $16 billion in orders for Nvidia's H20 server chips in the first three months of the year, the Information reported last week. Two U.S. lawmakers, Republican John Moolenaar and Democrat Raja Krishnamoorthi, called for more restrictions on exports of Nvidia's artificial intelligence chips in late January. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

Trump Administration Pausing H20 Chip Restriction Plans, NPR Says

--The White House paused plans to put additional restrictions on H20 artificial-intelligence chips after Nvidia Chief Executive Jensen Huang attended a dinner hosted by President Trump, NPR reported Wednesday, citing two people with knowledge of the situation. --Trump was previously planning to put export controls on the chips, which Nvidia sells to China, NPR said. --The change of course came after Nvidia promised the Trump administration new investments in U.S.-based AI data centers, NPR said. Full story: https://www.npr.org/2025/04/09/nx-s1-5356480/nvidia-china-ai-h20-chips-trump Write to Katherine Hamilton at [email protected]

Nvidia faces $5.5 billion charge as US restricts chip sales to China

(Reuters) -Nvidia on Tuesday said it would take $5.5 billion in charges after the U.S. government said it would require licenses for exports to China of its H20 artificial intelligence chip, which has been one of its most popular chips. Nvidia's AI chips have been a key focus of U.S. export controls as U.S. officials have moved to keep the most advanced chips from being sold to China. Almost immediately after those controls were implemented, Nvidia began designing chips that would come as close as possible to U.S. limits while still being legal to sell in China. Nvidia shares were down about 6% in after-market trading. The H20 is one of those chips. Chinese companies including Tencent, Alibaba and TikTok-parent ByteDance had been ramping up orders for H20 chips due to booming demand for low-cost AI models from startup DeepSeek, Reuters reported in February. Nvidia said on Tuesday that the U.S. government informed it on April 9 that the H20 chip would require a license to be exported to China and on April 14 told Nvidia those rules would be in place indefinitely. Nvidia's filing did not indicate how many, if any, of those licenses the U.S. government might grant. Nvidia declined to comment beyond its filing. The U.S. Department of Commerce, which oversees U.S. export controls, did not immediately return a request for comment. The $5.5 billion charges are associated with H20 products for inventory, purchase commitments and related reserves, Nvidia said. The news comes as Nvidia said on Monday it was planning to build AI servers worth as much as $500 billion in the U.S. over the next four years with help from partners such as TSMC, in step with the Trump administration's push for local manufacturing. (Reporting by Stephen Nellis in San Francisco and Utkarsh Shetti in Bengaluru; Editing by Devika Syamnath and Lisa Shumaker)

Nvidia's accounts weighed on by new US restrictions

On Tuesday, Nvidia announced a $5.5bn charge related to new restrictions imposed by the US government on the export of its H20 artificial intelligence chip to China, one of its key markets for this flagship product. The stock lost 6% in post-closing trading, mirrored by that of AMD, which is subject to the same restrictions. Nvidia's AI chips are at the heart of Washington's export controls, which are intended to prevent the most advanced components from being sold to China, in a context of growing rivalry over supremacy in artificial intelligence. In response to these measures, Nvidia had designed chips that comply with the limits imposed by the United States while coming as close as possible to them. A spokesperson for the US Department of Commerce said on Tuesday evening that new licensing requirements were now in effect for the export of certain chips, including Nvidia's H20, AMD's MI308, and their equivalents. "The Department of Commerce is acting in accordance with the presidential directive to protect our national and economic security," the spokesperson said. For Nvidia, the H20 is the most advanced chip yet authorized for sale in China and is a central part of its strategy to maintain a presence in the rapidly expanding Chinese AI market. According to Reuters information published in February, companies such as Tencent, Alibaba and ByteDance (parent company of TikTok) had increased their orders of H20 in order to meet the strong demand for low-cost AI models, particularly from the startup DeepSeek. Although H20 is not as powerful as other Nvidia chips sold outside China for training AI models, it remains competitive in the inference phase -- when the AI provides answers to the user -- which is now becoming the main driver of demand for AI chips. Last month, CEO Jensen Huang said that Nvidia was well positioned to dominate this transition. But Nvidia said on Tuesday that the US government had restricted sales of H20 to China due to the risks of use in supercomputers. Even though this chip offers lower computing performance than other models of the brand, its ability to connect quickly to memory chips and other components makes it a strategic tool. These characteristics could make it valuable for the construction of Chinese supercomputers, a sector already targeted by US restrictions since 2022. On Tuesday, the independent Washington-based think tank Institute for Progress called for strict oversight of H20, arguing that Chinese companies were already using it for prohibited purposes. Nvidia said that the US government had informed it on April 9 that a license was required to export the H20 chip to China, and that this requirement would be applied permanently from April 14. It is impossible to know at this stage how many licenses will be authorized, but the company has had to take a charge of $5.5 billion, which relates to H20 products, purchase commitments and related provisions.

Exclusive-Nvidia kept some China customers in the dark about new US chip clampdown, sources say

SINGAPORE (Reuters) - Nvidia did not warn at least some major customers in advance about new U.S. export rules it was told about a week ago requiring it to obtain licenses to sell its China-focused artificial intelligence chip, according to two sources familiar with the matter. The U.S. chipmaker disclosed on Tuesday that American officials had informed the company on April 9 that its H20 chip would require an export license for sales to China. The move to restrict H20 shipments marks Washington's latest effort to limit China's access to advanced semiconductors, as the United States seeks to maintain its edge in AI technology. Major Chinese cloud companies were still anticipating H20 deliveries by year-end, unaware of the impending restrictions, according to the two sources, who said Nvidia's China sales team also did not appear to be informed ahead of the public announcement. They spoke on condition of anonymity because of the sensitivity of the matter. Nvidia declined to comment. The export controls threaten Nvidia's business in China, one of its largest markets. Nvidia had secured $18 billion of H20 orders since the start of the year, according to one of the two sources and a third source. China generated $17 billion in revenue, or 13% of Nvidia's total sales, in its last fiscal year that ended on January 26. Nvidia shares fell 6% in after-hours trading on Tuesday after it said it would take up to $5.5 billion of charges in the first quarter ending April 27 due to the licensing requirement, which the U.S. government told it on Monday would be indefinite. The charges are associated with inventory, purchase commitments, and related reserves for H20 products, the company said. Chinese tech giants including Tencent, Alibaba and ByteDance, the owner of TikTok, had increased orders for H20 chips amid surging demand for affordable AI models from companies like startup DeepSeek, Reuters reported in February. Alibaba, ByteDance and Tencent did not immediately respond to requests for comment. The H20 is the primary chip Nvidia is legally permitted to sell in China and was launched after the latest round of U.S. export restrictions took effect in October 2023. Washington has banned exports of Nvidia's most advanced chips to China since 2022, concerned that advanced technologies could be used by China to build up its military capabilities. The restrictions on H20 could benefit Chinese AI chipmakers, particularly Huawei, which offers competing products to Nvidia's lineup, analysts said. "By restricting the H20 system, U.S. regulators are effectively pushing Nvidia's Chinese customers toward Huawei's AI chips," said Nori Chiou, investment director at Singapore-based White Oak Capital Partners. "Huawei's chip design and software capabilities are likely to advance quickly as it gains more customers and development experience," Chiou added. (Reporting by Fanny Potkin in Singapore and Liam Mo in Beijing; Additional reporting by Che Pan in Beijing; Editing by Jamie Freed)

Global chipmakers feel the pinch of Trump's shifting trade policy

(Reuters) - Global chip stocks were battered on Wednesday on fresh evidence of how U.S. President Donald Trump's shifting trade policy was complicating the outlook for semiconductor and computing giants, including AI pioneer Nvidia. Attempts to reorient global trade through tariffs and export curbs have started to show the effect as Nvidia warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China, while Dutch chip-making tools giant ASML raised doubts about its outlook. The U.S. restriction, which also hit the MI308 processor of Advanced Micro Devices, marked the latest blow for the AI chip trade that is losing steam after a two-year rally as tariff threats and concerns over Big Tech's spending weigh on sentiment. Nvidia shares fell 6.3% in U.S. premarket trading, with the company set to lose more than $160 billion in market value. AMD fell 6.6% as it warned of a $800 million hit from the latest curb, while other AI-related chip stocks, including Arm, Broadcom, Marvell Technology and Micron dropped between 3.5% and 4.6%. Tightening U.S. export curbs have in recent years made it harder for American chipmakers to tap the Chinese market, but the country remains a key source of revenue. Nvidia drew over 13% of its sales, or about $17 billion, from China in its last financial year, although that was down from 21% in fiscal 2023. "The H20 portion was about $12 billion or so (of the total China revenue), roughly about 30 cents of earnings per share, not trivial but not enormous in the grand scheme of things," Bernstein analyst Stacy Rasgon said. "H20 performance is low, well below already-available Chinese alternatives; a ban essentially simply hands the Chinese AI market over to Huawei." Rasgon said the move surprised many investors as shares had surged nearly 18% last week, partly due to a report that the Trump administration planned to back off from such a curb after CEO Jensen Huang attended a Mar-a-Lago dinner. The company had earlier this week unveiled plans to build AI servers worth as much as $500 billion in the U.S. over the next four years, a move largely seen as an overture to Trump. Trump has for now exempted semiconductors and some other electronics from his tariffs, but he has warned that sector-specific levies will be announced in the coming weeks. Such tariffs could cost U.S. semiconductor equipment makers more than $1 billion a year, Reuters reported on Tuesday. NVIDIA FALLOUT News of the latest export curb on Nvidia sparked a selloff in chip companies and its suppliers across the globe. In South Korea, Samsung closed down about 3%, while SK Hynix closed 4% lower. European chipmakers ASM International and Infineon Technologies fell close to 2%, while Japanese chip-testing equipment maker Advantest - an Nvidia supplier - was the Nikkei's second-worst performer with a 5% tumble. Still, some analysts said Nvidia's overall sales have continued to surge even as the China contribution slows while chip demand remains strong from big cloud companies. "While we acknowledge the likely impact to near-term numbers, we would stress that Blackwell shipments to core hyperscale customers remains the driver of fundamentals," TD Cowen analysts said, referring to Nvidia's latest line of AI systems. (Reporting by Arsheeya Bajwa, Aditya Soni, Joel Jose and Siddarth S in Bengaluru; Editing by Arun Koyyur)