Nvidia Faces $5.5 Billion Hit as U.S. Restricts AI Chip Exports to China

Nvidia blindsided by Trump's curbs in multibillion-dollar blow to China sales

Nvidia has been caught by surprise by Donald Trump's new export controls on its best-selling artificial intelligence chip in China, leaving the chipmaker and its clients to assess the damage caused by the US president's latest salvo in an escalating trade war. The $2.7tn semiconductor giant revealed a $5.5bn charge on Tuesday night related to new US controls on its sales to China, while industry insiders believe the hit on Nvidia's revenue could reach more than $10bn. The US chipmaker Intel, under chief executive Jensen Huang, told its Chinese clients last week that sales of some of their advanced artificial intelligence processors would start to require a licence, according to a company email reviewed by the Financial Times and people with knowledge of the discussions. According to two people with knowledge of the situation, Nvidia had thought its H20 graphics processing unit (GPU) -- a less powerful version of its AI chips designed to meet Washington's previous export controls -- could potentially be exempted from the requirement. After a meeting with Trump at his Florida residence at Mar-a-Lago earlier this month, Nvidia executives were left with the impression they could escape tougher enforcement of any curbs, the people said, adding the company's plan to invest $500bn in the US had also impressed the president. This led Nvidia to tell Chinese clients, including tech giants Alibaba, ByteDance and Tencent, that orders of H20s would not be affected, the people said. Nvidia was then blindsided as Trump decided to clamp down on the export of H20, a product that Chinese tech groups have relied upon in their efforts to challenge their global peers to develop large language models. Frustrated Chinese tech companies have complained about not having enough warning about such a major policy change, but are understanding that the shift is beyond the control of Nvidia, according to the people with knowledge of recent discussions. AI demand jumped in China after DeepSeek's successful launch of its low-cost reasoning model led local companies to put in almost $17bn orders for H20 chips this year, according to one of the people. While Nvidia typically takes more than six months to deliver such chips, most of this year's orders from its Chinese clients are yet to be filled and will probably be affected by the latest US restrictions. The $5.5bn hit to earnings Nvidia announced are mostly the cost of materials to be used to produce such orders and related penalties and operational costs for not delivering based on agreed terms. The actual affected revenue from China could be more than $10bn, the person estimated. China's tech giants are racing to find a replacement to the H20, while Trump's new export controls could significantly help the sales of domestic manufacturers led by Huawei, which has been pushing to produce more AI processors. It also remains unclear how Chinese groups can apply for a licence to obtain H20s and on what basis would they be issued. Intel told its Chinese clients last week that chips which would require a licence for exporting to China if they have: a total DRam bandwidth of 1400 gigabytes per second or more; I/O bandwidth of 1100 GB per second or more; or a total of both of 1700 GB per second or more, according to a company email. Intel's Gaudi series as well as Nvidia's H20 far exceed these requirements. Nvidia declined to comment. Intel, the White House and US commerce department did not immediately respond to requests for comment.

Global chip stocks slide as Nvidia warns of big hit from U.S. export curbs

April 16 (Reuters) - Global chip stocks slumped on Wednesday after Washington curbed exports of an AI chip Nvidia had tailored for China, further cutting off the crucial growth market for semiconductors in a move that will cost the AI pioneer $5.5 billion in charges. Nvidia said the charges it would incur is a result of U.S. restricting the export of its H20 AI chip to China, along with AMD's (AMD.O), opens new tab MI308 and their equivalents. The export curbs to China have in recent years squeezed U.S. companies, but the country remains a crucial revenue source with Nvidia drawing more than 13% of its sales, or some $17 billion, from China in its last fiscal year. Meanwhile, ASML (ASML.AS), opens new tab, the world's biggest supplier of computer chip-making equipment, cautioned that tariffs were adding to the uncertainty for its outlook for 2025 and 2026, sending its shares down over 4%. "We are not surprised that there are limits to H20...but the constraint there is supply, so a more sudden reduction in H20 - and given the inventory writedown, a higher revenue expectation going forward for H20 - will likely be disruptive to revenue and earnings," Morgan Stanley analysts said. Shares of Nvidia were down 5%, AMD dropped over 6%, while Micron Technology (MU.O), opens new tab, Broadcom (AVGO.O), opens new tab and Intel (INTC.O), opens new tab fell between 2% to 4% in premarket trading. Stacy Rasgon, a Bernstein analyst, said banning the H20 Chip 'makes no sense' as it would hand over the Chinese AI market to rivals Huawei. U.S. officials have been aiming to prevent the sale of critical chip to China in an effort to maintain a competitive edge in the AI race. "The impact of a full H20 wipeout is probably (about)30 cents or so at current levels (not enormous in the grand scheme of things)," Rasgon said. Reporting by Joel Jose and Siddarth S in Bengaluru; Editing by Arun Koyyur Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Technology

US stock futures drop, Nvidia tumbles on new curbs on chip exports to China

April 16 (Reuters) - Wall Street index futures dropped on Wednesday and chip darling Nvidia slumped after the company flagged steep charges from new U.S. curbs on chip exports to China, fuelling worries about the fallout of an escalating trade war. The U.S. Commerce Department late Tuesday issued new export licensing requirements for Nvidia's (NVDA.O), opens new tab H20, and AMD's (AMD.O), opens new tab MI308 artificial intelligence chips to China. Nvidia (NVDA.O), opens new tab said it faces $5.5 billion in charges after the curbs on exports to China, a key market for one of its most popular chips. Shares of the heavyweight stock slumped 5.2% in premarket trading, while AMD shares lost 5.9%. Other chip stocks too lost ground, with Micron Technology (MU.O), opens new tab down 3.5% and Broadcom (AVGO.O), opens new tab falling 3.1%. Futures for Wall Street's main indexes fell across the board, with those tracking the tech-heavy Nasdaq 100 leading the declines. The new export controls are the newest attempt from the U.S. to keep advanced semiconductors from being sold to China, and the latest escalation of trade tensions between the world's two largest economies. Nvidia's warning highlighted the impact of the escalations on businesses, and re-fueled worries that the constant shifts in U.S. trade policy would hit consumption and economic growth. Those worries have led to sharp volatility in financial markets, with all three major Wall Street indexes losing ground so far this year. The CBOE volatility index (.VIX), opens new tab, Wall Street's "fear gauge," ticked up to 31.86 after falling for the past three sessions. Separately, U.S. President Donald Trump ordered a probe into potential new tariffs on all U.S. critical minerals imports. At 5:00 a.m. ET, Dow E-minis were down 80 points, or 0.18%, S&P 500 E-minis were down 34.75 points, or 0.64% and Nasdaq 100 E-minis were down 227.5 points, or 1.2%. Given the market volatility and growth worries sparked by trade uncertainty, investors will closely monitor a speech by Federal Reserve Chair Jerome Powell later in the day for indications on how the central bank could respond. Traders see a 20% chance that the Fed will ease rates by 25 basis points at its May meeting, as per CME FedWatch. March retail sales, due at 8:30 a.m. ET, will also be scrutinized for clues on how consumers are faring amid uncertainty and rising inflation expectations. Corporate results are also in focus. Shares of United Airlines (UAL.O), opens new tab rose 6.2% after the company reported stable bookings, despite forecasting lower profit for the current quarter, and flagging risks if the U.S. economy slips into recession. Reporting by Lisa Mattackal in Bengaluru; Editing by Shinjini Ganguli Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:U.S. Markets

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

SINGAPORE, April 16 (Reuters) - Nvidia (NVDA.O), opens new tab 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 (0700.HK), opens new tab, Alibaba (9988.HK), opens new tab 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 Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Nvidia says it follows export laws 'to the letter' a day after AI chip sales to China stopped

Jensen Huang, co-founder and chief executive officer of Nvidia Corp., during the opening ceremony of the Siliconware Precision Industries Co. (SPIL) Tan Ke Plant in Taichung, Taiwan, on Thursday, Jan. 16, 2025. A day after Nvidia revealed it would incur $5.5 billion in costs related to canceled orders for the H20 chip, which the government said this week requires a license to export to China, the company said it abides by rules on where it can sell its artificial intelligence processors. "The U.S. government instructs American businesses on what they can sell and where -- we follow the government's directions to the letter," an Nvidia representative said in a statement. Nvidia said the statement was in response to a House Select Committee focused on national security threats from China, which opened an investigation into Nvidia's sales on Wednesday. The H20 was introduced by Nvidia after the Biden administration restricted AI chip exports in 2022. It's a slowed-down version intended to comply with U.S. export controls. Nvidia's brief comment is an indication of how the company is going to defend its business in Washington, D.C., as its technology draws increased scrutiny related to national defense and security. The company's stock price tumbled almost 7% on Wednesday. Nvidia's chips have the vast majority of the market for AI applications, and some were used by China's DeepSeek to build R1, which upended markets in January. On Wednesday, the chipmaker touted the taxes it paid, its U.S.-based workforce, and its role as a technology leader. The company's exports even help the U.S. fix its trade deficit, the statement said, directly addressing President Trump's stated reason for introducing tariffs earlier this month.

Nvidia discloses that U.S. will limit sales of advanced chips to China after all

Nvidia CEO Jensen Huang introduces new products during a keynote session at the SAP Center in San Jose, Calif. on March 18, 2025. Josh Edelson/AFP via Getty Images hide caption Nvidia says the U.S. government is going ahead with export controls that will limit sales to China of one of its most advanced semiconductor chips used to power artificial intelligence system. In a filing to the Securities and Exchange Commission on Tuesday, Nvidia said it expects the controls to cost them about $5.5 billion in charges due to the H20 chip inventory and prior sales now covered by the new restrictions and which they will not be able to sell. Earlier this month, NPR had reported that the US government had paused long-planned restrictions on the sale of these advanced chips after Nvidia's founder attended a $1 million-a-head dinner at Mar-a-Lago. The same day as NPR's story was published, Nvidia's disclosure says U.S. authorities told them there would be export controls on the H20, which require Nvidia to apply for licenses each time it wants to sell the chip to customers in China. This week, U.S. authorities also told the company the controls would be effective indefinitely. Nvidia did not tell many of its major customers about the controls for days, according to Reuters. The company also announced this week it would build its first two supercomputer factories in the U.S., a $500 billion investment the White House hailed as part of President Trump's "relentless pursuit of an American manufacturing renaissance." The H20 chip had been the most advanced chip Chinese customers could still purchase from Nvidia, after U.S. controls starting in 2022 cut off other chips which have artificial intelligence applications. Nvidia specifically designed the H20 to comply with American export constraints. Analysts point out the chip is very similar to another Nvidia chip, the H100, that was export controlled earlier. Nvidia's founder and CEO Jensen Huang has been quietly lobbying the Trump administration. China has been one of the company's biggest markets, and it recorded more than $17 billion in sales there in 2024. The Commerce Department and Nvidia did not respond to requests for comment at the time of publication. Nvidia's stock sank by as much as 7% during trading on Wednesday.

Nvidia stock slumps 6% as a U.S. ban on China AI exports means a $5.5 billion hit

The U.S.-China tech war just claimed another high-profile casualty. Nvidia (NVDA), America's third-largest company by market cap, said Wednesday it will take a $5.5 billion charge after the U.S. government moved to block exports of its H20 AI chips to China -- citing national security risks tied to their potential use. The H20 had been engineered to comply with earlier Biden-era restrictions and had become a key product for Nvidia in China, one that was quickly gaining traction. But the sudden reversal by the Trump administration, after months of policy limbo and back-channel talks, signals another hard turn in trade policy -- and lays bare the high-stakes game playing out among Silicon Valley, Washington, and Beijing. Let's rewind: On April 9, Nvidia CEO Jensen Huang attended a $1-million-a-plate Mar-a-Lago dinner with President Trump, where AI exports were reportedly a topic of conversation. Proceeds from the dinner went to MAGA Inc., a Trump-aligned super PAC that can raise unlimited funds but isn't allowed to coordinate directly with the campaign. Five days later, on April 14, the U.S. informed Nvidia it would need a license to export H20 chips abroad. On April 16, Nvidia announced the multibillion-dollar charge -- and markets flinched. Meanwhile, ASML (ASML), the Dutch semiconductor equipment powerhouse, reported first-quarter sales of €7.7 billion -- slightly below forecasts -- and flagged "greater uncertainty" due to trade tensions. ASML makes the machines essential for cutting-edge chip production, giving it enormous influence over global chip supply. The company warned that new tariffs and tech restrictions could weigh on its outlook for 2025 and 2026. Investors didn't like what they saw. Nvidia stock slid 6% at the market open Wednesday, with AMD (AMD) and other chipmakers falling in tandem. The broader Nasdaq dropped over 2%, as Wall Street reassessed what a prolonged, escalating tech standoff could mean for supply chains, AI development, and the semiconductor industry. In a Wednesday note, Jefferies (JEF) analysts said the H20 ban was expected -- but the size of Nvidia's write-down was not. It signals outsized demand from Chinese buyers, who had reportedly placed $16 billion in H20 orders this year. Still, Jefferies says China has likely stockpiled enough GPUs for ongoing AI training and will increasingly lean on local chips for inferencing tasks. Markets may have priced in some pain, but they haven't seen the last punch.

Nvidia and major chipmakers slump on the stock market - after new China restrictions revealed

The US commerce department said it was "committed to acting on the president's directive to safeguard our national and economic security". Stocks in leading AI chipmakers have slumped after firms said new restrictions on exports to China would cost them billions. Nvidia fell 6.87% - and was at one point down 10% - after revealing it would now need a US government licence to sell its H20 chip. The bespoke China chip is already deliberately less powerful than products sold elsewhere after intervention from the previous Biden administration. However, the Trump government is worried the H20 and others could still be used to build a supercomputer in China, threatening national security and US dominance in AI. Nvidia said the move would cost it around $5.5bn (£4.1bn) and the licensing requirement would be in place for the "indefinite future". Rival chipmaker AMD slumped 7.35% after it predicted a $800m (£604m) charge due to its MI308 also needing a licence. Dutch firm ASML, which makes hardware essential to chip manufacturing, fell more than 5% after it missed order expectations and said US tariffs created uncertainty. It's currently unclear exactly how the licence system will work and if there will be exemptions. The losses filtered into the tech-dominated Nasdaq index, which recovered slightly to end 3% down, while the larger S&P 500 fell 2.2%. Such losses would have been among the worst in years were it not for the turmoil over recent weeks. It comes as China remains the focus of Donald Trump's tariff regime, with both countries imposing tit-for-tat charges of over 100% on imports. The US commerce department said in a statement it was "committed to acting on the president's directive to safeguard our national and economic security". Nvidia's recently announced a $500bn (£378bn) investment to build infrastructure in America - something Mr Trump heralded as a victory in his mission to boost US manufacturing. However, it appears to have been too little to stave off the new restrictions. Pressure has also come from the Democrats, with senator Elizabeth Warren writing to the commerce secretary and urging him to limit chip sales to China. Meanwhile, the head of US central bank also warned on Wednesday that US tariffs could slow the economy and raise inflation more than expected. Jerome Powell said the bank would need more time to decide on lowering interest rates. "The level of the tariff increases announced so far is significantly larger than anticipated," he said. "The same is likely to be true of the economic effects, which will include higher inflation and slower growth." Predictions of a recession in the US have risen significantly since the president revealed details of the import taxes a few weeks ago. However, he subsequently paused the higher rates for 90 days to allow for negotiations.

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, AMD, and Other Chip Stocks Fall as Trump Curbs Exports to China

Nvidia is expected to report its latest financial results on May 28. Semiconductor stocks sank Wednesday after Nvidia (NVDA) and Advanced Micro Devices (AMD) warned they would take a hit after the Trump administration moved to curb the chipmakers' exports to China. Nvidia and AMD shares tumbled over 6% in early trading, and Broadcom (AVGO) shed close to 4%. Other chip stocks were also lower, dragging the PHLX Semiconductor Index (SOX) down 4%. (Read Investopedia's live coverage of today's market action here.) Nvidia said Tuesday it expects to take a $5.5 billion charge in its fiscal 2026 first-quarter results after the Trump administration limited exports of its artificial intelligence chips to China. The chipmaker said it was informed on April 9 that it required an export license "for the indefinite future" to sell its H20 chips to China. The license is meant to reduce the risk that the H20, which is less powerful than Nvidia's latest chips and had been tailored to meet U.S. export restrictions, ends up in a Chinese supercomputer. Nvidia is expected to report its latest financial results on May 28. AMD said it expects to face charges of up to $800 million related to the export of its MI308 chip. The new license requirement will also apply to other chip "equivalents," a spokesman for the U.S. Commerce Department said, according to reports.

Nasdaq futures, Nvidia slide after new US curbs on chip exports to China

Nasdaq futures led declines on Wednesday and AI-chip heavyweight Nvidia slumped after it flagged steep charges from new U.S. curbs on semiconductor exports to China, the latest flashpoint in trade tensions between the world's two largest economies. The U.S. Commerce Department late on Tuesday issued new export licensing requirements for Nvidia's H20 and AMD's MI308 artificial-intelligence chips to China. Nvidia said it faces $5.5 billion in charges after the restrictions on exports to China, a key market for one of its most popular chips. Shares of Nvidia slumped 6.4% in premarket trading, while AMD shares lost 6.8%. Other chip stocks also lost ground, with Micron Technology down 4% and Broadcom falling 3.9%. The export controls are the newest attempt from the administration of President Donald Trump to keep advanced semiconductors from being sold to China. Nvidia's warning highlighted the impact of the trade tensions on businesses and fueled worries that the constant shifts in U.S. trade policy would hit domestic consumption and economic growth. Investors are now hawk-eyed about the outlook from companies this earnings season. "The trade escalation continues at full speed. (In response) China could well restrict its exports of rare earth metals and other commodities essential to building chips and machines to the U.S.," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Ozkardeskaya said that the latest Chinese economic data was broadly positive and that "the stronger the Chinese data, the less likely it is to bend to U.S. demands". Those worries have also led to sharp volatility in financial markets, with all three major Wall Street indexes losing ground so far this year. The CBOE volatility index, Wall Street's "fear gauge," ticked up 1.46 points to 31.58 after falling for the last three sessions. Separately, Trump ordered a probe into potential new tariffs on all critical minerals imports. At 07:12 a.m., Dow E-minis were down 35 points, or 0.09%, S&P 500 E-minis were down 43.25 points, or 0.8% and Nasdaq 100 E-minis were down 285.25 points, or 1.5% Investors will closely monitor a speech by U.S. Federal Reserve Chair Jerome Powell later in the day for indications on how the central bank will respond to the market's volatility, coupled with growth worries. Traders see a 20% chance that the Fed will ease rates by 25 basis points at its May meeting, according to CME's FedWatch. March retail sales, due at 8:30 a.m. ET, will also be scrutinized for clues on how consumers are faring amid uncertainty and rising inflation expectations. Corporate results are now in focus, with many financial institutions set to report results before markets open. United Airlines rose 6.4% after the company reported stable bookings despite forecasting lower profit for the current quarter and flagging risks if the U.S. economy slips into a recession. Tesla fell 2.2% after Reuters reported that Trump's tariffs on Chinese parts had disrupted the EV-maker's production plans.

Nvidia share price crashes today: Why have AI giant stocks fallen on Wednesday?

Nvidia's shares fell 6.5 per cent in premarket trading. Rival chipmaker AMD's shares dropped 6.8 per cent.Nvidia share price on Wednesday tanked, taking Nasdaq decisively lower after the AI giant disclosed a large financial hit from American export restrictions to China. Shares of Nvidia slumped nearly six percent as the chip company disclosed that it expected a $5.5 billion hit this quarter due to a new US licensing requirement on the primary chip it can legally sell in China. Chipmaker Nvidia's shares fell 6.5 per cent in premarket trading after it said the U.S. had imposed stricter controls on its exports of one of its computer chips designed for use in artificial intelligence. Rival chipmaker AMD's shares dropped 6.8 per cent. Trade war concerns also were revived by a Trump administration announcement of an investigation into imports of critical minerals such as rare earths, which are used in smartphones, electric vehicles and many other products. Nvidia sank after saying the U.S. government is restricting exports of its H20 chips to China, citing worries that they could be used to build a supercomputer. Stacy Rasgon, a Bernstein analyst, said banning the H20 Chip 'makes no sense' as it would hand over the Chinese AI market to rivals Huawei. "The impact of a full H20 wipeout is probably (about)30 cents or so at current levels (not enormous in the grand scheme of things)," Rasgon said. U.S. officials have been aiming to prevent the sale of critical chip to China in an effort to maintain a competitive edge in the AI race. Q1. How are Nvidia's shares performing? A1. Chipmaker Nvidia's shares fell on Wednesday 6.5 per cent in premarket trading. Q2. What is USA government's stance on AI Chip? A2. U.S. officials have been aiming to prevent the sale of critical chip to China in an effort to maintain a competitive edge in the AI race.

US Stock Futures, Nikkei Slip Amid Fresh Nvidia Headwinds: Dollar Continues To Lose Steam - Netflix (NASDAQ:NFLX), American Express (NYSE:AXP)

U.S. stock futures slipped Tuesday night, amid fresh tariff-related uncertainties and headwinds for semiconductors spooking tech stocks, as investors await crucial retail sales data and more prominent earnings this week. The S&P 500 Futures are down 0.88%, trading at 5,380, followed by the tech-heavy Nasdaq Futures at 18,678, down 1.48%, and Dow Jones Futures down 0.41%, at 40,410 points, at the time of writing. See More: Bank Of America CEO Says Consumers Are 'Resilient,' While Business Owners 'Worried' As 'We Face A Changing Economy' Asian markets opened lower, with the Nikkei 225 benchmark down 0.45% in early morning trade, following a two-day winning streak, after taking cues from Wall Street on Tuesday, with electronics components and semiconductor stocks leading the decline. The U.S. Dollar Index is down 0.34%, trading at 99.87 following a rally on Tuesday that saw the index rebound from a three-year low of 99.6. Markets are jittery following Nvidia Corp.'s NVDA warning that the U.S. government's decision to block the sale of some of its AI chips to China will result in a $5.5 billion earnings hit during the current quarter, leading to a pullback in the stock in after-hours trading. Investors are waiting for the March retail sales data on Wednesday, and several other earnings releases over this week, such as Netflix Inc. NFLX, UnitedHealth Group Inc. UNH, and American Express Co. AXP. Photo Courtesy: Vinnikava Viktoryia On Shutterstock.com Read More: Trump Tariffs May Not Ignite Inflation After All, Says Yardeni AXPAmerican Express Co$255.20-0.07%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum78.36Growth61.13Quality74.76Value-Price TrendShortMediumLongOverviewNFLXNetflix Inc$974.104.60%NVDANVIDIA Corp$105.10-5.07%UNHUnitedHealth Group Inc$582.00-0.86%Got Questions? AskWhich semiconductor companies will be impacted by tariffs?How could Nvidia's earnings hit affect competitors?What opportunities exist in AI chip manufacturers post-Nvidia's warning?Are there alternative tech stocks benefiting from Nvidia's troubles?How might retail stocks react to upcoming sales data?What implications does U.S. Dollar decline have for imports?Could Asian markets present buying opportunities amid declines?Which financial services firms may benefit from robust consumer resilience?What shifts are expected in tech stock valuations after earnings reports?How will American Express's earnings affect investor sentiment?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia's China Sales Face Setback As H20 Chip Restrictions Catch Key Buyers Off Guard: Reuters - NVIDIA (NASDAQ:NVDA)

On Tuesday, Nvidia Corp NVDA disclosed that the Trump administration informed it on April 9 that its H20 chip would require an export license for sales to China. The chipmaker failed to warn some major customers about new U.S. export rules to help them prepare in advance, Reuters reported, citing unnamed sources familiar with the matter. Nvidia bagged $18 billion of H20 orders since 2025 beginning. Also Read: Taiwan Semiconductor Preps New Chip Tech To Supercharge AI Performance By 2027 China generated $17 billion in revenue in fiscal 2024, accounting for 13% of Nvidia's total sales. Nvidia stock has been tanking since Tuesday. It disclosed that it booked up to $5.5 billion in charges in the first quarter due to the licensing requirement. Chinese tech giants, including Alibaba Group Holding BABA, ByteDance, and Tencent Holdings TCEHY, have been stocking up on H20 chips, fearing further semiconductor sanctions. They reportedly placed over $16 billion in orders for the quarter. Also, the popularity of Chinese AI startup DeepSeek's low-cost AI models drove a surge in demand for AI computing power. Redburn Atlantic analyst Timm Schulze-Melander named Nvidia a 'top pick' despite macro uncertainties and potential demand softening, citing investments in leading-edge AI and chipmaking will likely show resilience. On Monday, Nvidia announced plans to develop $500 billion in AI-related infrastructure across the U.S. over the next four years. Bank of America analyst Vivek Arya noted that Nvidia stock is providing a particularly attractive opportunity for one of the most unique, high-quality tech franchises leading the most significant and fastest-growing secular trends. Price Action: NVDA stock is down 7.65% at $103.62 at the last check on Wednesday. Read Next: ASML Approaches End Of China Backlog, Eyes Growth in AI and Advanced Chip Demand Image via Shutterstock NVDANVIDIA Corp$103.63-7.64%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum79.49Growth94.79Quality97.18Value7.17Price TrendShortMediumLongOverviewBABAAlibaba Group Holding Ltd$107.85-3.95%TCEHYTencent Holdings Ltd$58.20-1.00%Market News and Data brought to you by Benzinga APIs

Nvidia Says It Follows US Government Instructions On What It Can Sell And Where Amid Trade War Escalation With China - NVIDIA (NASDAQ:NVDA)

On Wednesday, Nvidia Corporation NVDA responded to a national security investigation, defending its compliance with U.S. export rules following the escalated restrictions on AI chip sales to China. What Happened: In a statement issued on Wednesday, the company addressed a House Select Committee's inquiry into the sale of its H20 processors, which recently became subject to new export restrictions, reported CNBC. "The U.S. government instructs American businesses on what they can sell and where -- we follow the government's directions to the letter," an Nvidia representative stated. This statement came a day after the company warned it could face a $5.5 billion financial hit due to the canceled H20 chip orders, which the government has now classified as requiring a license for export to China. Nvidia's H20 chips were previously legal for export to China under the Joe Biden administration's rules, but are now under stricter restrictions. See Also: Intel Shares Have Dropped 47% In The Past Year, Now Chipmaker Faces China AI Chip Curbs Just Like Nvidia Amid Trade Tensions Why It's Important: Some of Nvidia's processors were reportedly used by China's DeepSeek to develop the R1 model. On Wednesday, the company highlighted its contributions to the U.S. economy, including tax payments, domestic workforce, and leadership in technological innovation. Nvidia also argued that its exports play a role in reducing the U.S. trade deficit -- a point it raised in response to President Donald Trump's justification for implementing new tariffs. On the same day, Bank of America analyst Vivek Arya stated that although the new restrictions on H20 chip exports to China are unfavorable, they were mostly expected and represent only a "manageable risk" to Nvidia's revenue projections. The firm reaffirmed its positive outlook on Nvidia, keeping a Buy rating and a price target of $160, suggesting a potential 42.6% increase from Tuesday's closing price of $112.20. Price Action: Nvidia's stock declined 7.06% on Wednesday, extending a broader slide that has resulted in a year-to-date drop of approximately 24.45%. Over the past 12 months, however, the stock has gained 19.53%, based on data from Benzinga Pro. According to Benzinga Edge Stock Rankings, Nvidia currently boasts a growth score of 94.79%. Click here to see how it stacks up against other leading chipmakers. 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. NVDANVIDIA Corp$103.38-7.86%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum79.49Growth94.79Quality97.18Value7.17Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

World shares fall as Nvidia, other tech companies are walloped by U.S. controls on AI chips

BANGKOK -- World shares were mostly lower Wednesday as Nvidia and other technology companies were walloped by tighter U.S. controls on exports of advanced computer chips used for artificial intelligence. The future for the S&P 500 skidded 1.2% while that for the Dow Jones Industrial Average lost 0.6%. Chip maker Nvidia's shares fell 6.3% in after-hours trading after it said the U.S. had imposed stricter controls on its exports of one of its computer chips designed for use in artificial intelligence. Rival chip maker AMD's shares dropped 7.1% after U.S. markets closed. Trade war concerns also were revived by a Trump administration announcement of an investigation into imports of critical minerals such as rare earths, which are used in smart phones, electric vehicles and many other products. In early European trading, Britain's FTSE 100 lost 0.2% to 8,233.10 after the government said inflation in the U.K. fell for the second month running in March largely as a result of lower gas prices. Germany's DAX fell 0.7% to 21,107.68, while the CAC 40 in Paris gave up 0.6% to 7,289.67. Stocks in China led the regional declines after the Chinese government reported the world's second largest economy grew at a strong 5.4% annual rate in the last quarter, helped by strong industrial production, retail sales and exports. But in quarterly terms, growth slowed to 1.2% in January-March from 1.6% in the last quarter of 2024. Hong Kong's Hang Seng dropped 2% to 20,922.54, while the Shanghai Composite index regained lost ground, edging 0.1% higher to 3,271.19. Private sector economists have been downgrading their forecasts after President Donald Trump recently pushed his tariffs on most imports from China to 145%, while China raised its duties on imports from the U.S. to 125%. Analysts at ANZ Research said activity in the current quarter is already weakening. "Our view is that the tariff shock is caused by the unpredictability rather than the tariff itself. President Trump's announcements have affected business sentiment and activity," Raymond Yeung and other ANZ researchers said in a report after the China data was released. In Tokyo, the Nikkei 225 index shed 1% to 33,920.40, pulled lower by big tech companies like chip testing equipment maker Advantest, whose shares dropped 6.6% and Disco Corp. which plunged 8%. South Korea's Kospi fell 1.2% to 2,447.43, while in Australia, the S&P/ASX 200 edged less than 0.1% lower to 7,758.90. India's Sensex was little changed and Bangkok's SET edged 0.1% lower. On Tuesday, U.S. stocks drifted, with the S&P 500 slipping 0.2% and the Dow down 0.4%. The Nasdaq composite edged less than 0.1% lower. Uncertainty over President Donald Trump's tariffs kept investors watching to see what comes next. The U.S. bond market appeared to calm after its sudden and sharp moves last week shook confidence in the status of U.S. government bonds as a safe haven against risks. The yield on the 10-year Treasury was steady at 4.33%, down from 4.38% late Monday and 4.48% at the end of last week. A week earlier it had been at just 4.01%. Yields usually drop when investors are jittery, so this week's moves have offered reassurance. The value of the U.S. dollar also steadied after tumbling last week, raising more worries that Trump's trade war also may be undermining its status as a safe-haven investment. Palantir Technologies climbed 6.2% for a second day of gains after NATO said it would use the company's artificial-intelligence capabilities in its allied command operations. In other dealings early Wednesday, U.S. benchmark crude oil lost 69 cents to $60.64 per barrel, while Brent crude, the international standard, fell 65 cents to $64.01 per barrel. Trump's tariffs have raised expectations that economies will slow, denting demand for oil and other resources. The U.S. dollar fell to 142.26 Japanese yen from 143.24 yen. The euro rose to $1.1377 from $1.1283.

US stocks slump as chipmaker sounds alarm on $5.5B charge amid new...

US stocks opened in the red on Wednesday morning after the Commerce Department unveiled new restrictions on popular chip exports to China - and Nvidia warned it could cost the chipmaker billions of dollars. The Dow Jones Industrial Average plunged 194 points, or 0.5%, shortly after the regular trading session began at 9:30 a.m ET. The S&P 500 and the Nasdaq fell 0.9% and 1.7%, respectively. The Commerce Department announced on Tuesday that it was mandating new licensing requirements for Nvidia and AMD to export popular chips to China. Nvidia said it would be hit with $5.5 billion in charges due to the new regulations, which would limit exports of its popular H20 artificial intelligence chip to China, one of its key markets. Shares in Nvidia and AMD plunged 5.5% and 6.3%, respectively, on Wednesday morning. Stocks had been on a rebound after a volatile week of trading, as President Trump's back-and-forth on tariffs -- unveiling stiff taxes and then pausing them for 90 days -- spooked investors. The White House has imposed a hefty 145% tax on goods from China, and temporarily lowered all other rates to 10% as the administration holds negotiations with several nations. The stricter rules on semiconductors are just the latest move from US officials to keep advanced chips from making their way to China to prevent the nation from building powerful supercomputers and edging ahead in the AI race. "The Commerce Department is committed to acting on the President's directive to safeguard our national and economic security," a spokesperson for the department said in a statement. Chinese companies, including Tencent, Alibaba and ByteDance, which owns TikTok, had been ramping up their orders for Nvidia's H20 chips to keep up with demand for low-cost AI models after DeepSeek's roaring debut, according to a Reuters report. Nvidia was reportedly made aware of the incoming export rules last week, but did not warn some of its major customers in advance, sources familiar with the matter told Reuters. The loss of these customers could significantly hammer Nvidia's business, which had secured $18 billion worth of H20 orders since the start of the year, according to the report. Nvidia's H20 is the main chip it is legally allowed to sell to Chinese customers. Since 2022, the company has faced increasingly strict restrictions as the US fears advanced chips could help China advance its military power. The latest chip export curbs could push Chinese firms to purchase chips from local competitors, like Huawei. Costs for chipmakers in the US, meanwhile, are expected to soar due to Trump's sweeping tariffs. The new taxes could cost semiconductor equipment makers more than $1 billion a year, according to industry calculations discussed with White House officials, per a Reuters report. The three largest US chip equipment manufacturers - Applied Materials, Lam Research and KLA - may lose roughly $350 million each per year, sources said. Smaller rivals could also be slapped with tens of millions of dollars in additional costs.

China internet stocks, chipmakers sink as Nvidia flags more US trade controls By Investing.com

Investing.com-- China's biggest internet stocks weakened on Wednesday, leading losses across broader Asian tech after AI darling Nvidia flagged a steep impairment cost from stricter U.S. export controls. China's BAT trio- Baidu Inc (HK:9888) (NASDAQ:BIDU), Alibaba (HK:9988) (NYSE:BABA), and Tencent (HK:0700)- fell between 2.9% to 5% in Hong Kong trade, while smaller players such as Weibo Corp (HK:9898) (NASDAQ:WB) and JD.com (HK:9618) fell 2% and 6.2%, respectively. A lack of access to Nvidia (NASDAQ:NVDA) chips could stymie efforts by major Chinese companies to develop advanced artificial intelligence technology and remain competitive in the industry. China's BAT trio, along with social media giant Bytedance, are at the forefront of the country's AI development, and largely use Nvidia hardware. Recent reports showed Chinese firms had ordered at least $16 billion worth of Nvidia's H20 chip in the first quarter of 2025. Chinese AI development came into renewed focus with the release of DeepSeek earlier in 2025. DeepSeek had also revealed it was using Nvidia hardware. Nvidia's major Asian suppliers also clocked losses. Contract chipmaker TSMC (TW:2330) fell more than 2% in Taiwan trade, while electronics giant Hon Hai Precision Industry (TW:2317), also known as Foxconn, fell by a similar margin. South Korean memory chip giant SK Hynix Inc (KS:000660) fell more than 3%, while Japan's Advantest Corp. (TYO:6857) slid nearly 7%. Losses in Asian stocks came tracking an over 6% decline in Nvidia's shares in aftermarket trade, after the company said it will log a $5.5 billion charge on its April quarter results due to new U.S. restrictions on AI chip sales to China. The move stands to potentially block Nvidia from selling in China, which is still a sizeable market for the chipmaker. Specifically, Nvidia will now have to seek U.S. government licenses to sell its H20 chip in China. The H20 chip was specifically designed by Nvidia to be in line with Biden-era restrictions on chip exports to China, and was a major seller for the company in China. But more restrictions on Nvidia could block future sales of the chip in China, allowing local rivals such as Huawei to gain more market share. Markets were on edge over such a scenario, especially as the U.S. and China became embroiled in a bitter trade war over the past week.

Tech stocks slide after Nvidia warns of $5.5 bln charge over China export curbs By Investing.com

Investing.com-- Major technology stocks and chipmakers declined on Tuesday evening after NVIDIA Corporation (NASDAQ:NVDA) said it would incur a $5.5 billion charge in its fiscal first quarter due to new U.S. export restrictions on its H20 artificial intelligence chips to China. The H20, designed specifically for the Chinese market, now requires an export license under U.S. regulations -- a requirement expected to remain indefinitely, the U.S. government told Nvidia. Nvidia shares plunged 6.5% in after-hours trading on Tuesday following the announcement. Other major chipmakers were also affected. Advanced Micro Devices Inc (NASDAQ:AMD) declined over 7%, Intel Corporation (NASDAQ:INTC) fell 2%, and Broadcom Inc (NASDAQ:AVGO) lost 3.5%. U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (TSMC) (NYSE:TSM) slipped 2%. The export restrictions are part of ongoing U.S. efforts to limit China's access to advanced semiconductor technology. Nvidia's H20 chip, despite being a less powerful variant of its top AI chips, was tailored to comply with previous U.S. export controls. However, the new rules render existing inventory unsellable, prompting the substantial writedown. Nvidia said the $5.5 billion charge is related to inventory, purchase commitments, and associated reserves for its H20 microchip products. The broader tech sector also felt the impact, leading to a 1.5% decline in tech-heavy Nasdaq 100 Futures on Tuesday evening.

Tech shares dip as Nvidia says controls on AI chip exports will cost it billions | BreakingNews.ie

Shares in computer chipmakers slumped on Wednesday after Nvidia said tighter US government controls on exports of computer chips used for artificial intelligence will cost it an extra 5.5 billion dollars (£4.15 billion). The company, which announced on Monday that it will produce its artificial intelligence supercomputers 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, Nvidia said the government said the controls addressed risks that the products "may be used in or diverted to, a supercomputer in China". Shares in Nvidia and rival chipmaker Advanced Micro Devices (AMD) each fell about 6% in morning trading on Wednesday. AMD said in a regulatory filing on Tuesday that the export controls could potentially result in a charge of around 800 million dollars (£604 million) in "inventory, purchase commitments and related reserves". The US Commerce Department said on Wednesday that its new export licensing requirements pertain to Nvidia's H20, AMD's MI308 chips "and their equivalents". It said it is "committed to acting on the President's directive to safeguard our national and economic security". 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 Senator Elizabeth Warren urged 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)," Ms Warren wrote in a letter posted on the website of the US Senate's Committee on Banking, Housing and Urban Affairs. It said former 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. Nvidia said on Monday it has commissioned more than one million square feet of manufacturing space to build and test its specialised 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 President Donald Trump and other officials said tariff exemptions on electronics such as smartphones and laptops were only a temporary reprieve until officials develop a new tariff approach specific to the semiconductor industry. Mr Trump claimed Nvidia's decision as a victory for his effort to expand manufacturing in the US.

Tech Slides on Chinese Nvidia Restrictions - Tech Roundup

Shares of technology companies slid after a warning from one major artificial-intelligence firm about trade-war impact. Nvidia said it's anticipating a charge of up to $5.5 billion tied to exporting its AI chips to China, according to a regulatory filing from the semiconductor company. Nvidia also disclosed the U.S. will now require a license for exporting the company's H20 processors to China and other countries. Nvidia "now has massive blockades going after the China market in the middle of this raging US/China tariff battle," warned analysts at brokerage Wedbush, in a note to clients. Among other chip makers who count China as a key market, shares of Qualcomm, AMD and Broadom slid. The Nvidia restrictions will affect the AI specialist's "ecosystem" of suppliers and customers, warned Vivek Arya, an analyst at brokerage Bank of America Global Research. Among those suppliers are semiconductor-production machine makers KLA and ASML Holding. Dutch firm ASML fell sharply after it posted orders below analysts' projections for the first quarter as chip makers held back spending on its semiconductor-making machinery, and warned that U.S. President Trump's unpredictable tariff policies were creating uncertainty for the industry. The Nasdaq 100 is down 6.1% so far in April, compounding a 7.7% loss in March. The March loss was the worst monthly performance since 2022.