Nvidia Hit by New U.S. Export Controls on AI Chips to China, Boosting Local Rivals

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

U.S. chip controls will benefit China's Nvidia rivals like Huawei: Analysts

"There are several local Chinese companies that produce chips to compete with Nvidia," said Brady Wang, associate director at Counterpoint Research. As the U.S. tightens controls on Nvidia's sales to China, the country's rising domestic artificial intelligence chipmakers like Huawei stand to benefit, semiconductor analysts say. The Commerce Department said last week that Nvidia's H20 graphics processing units -- designed to comply with previous U.S. restrictions -- would now require export licenses, as would additional chips from AMD. Nvidia says it has already halted exports of the GPUs, resulting in a quarterly charge of approximately $5.5 billion. But the American AI darling's loss could be a gain for China's local AI chip players as China continues to search for its own Nvidia alternative, semiconductor analysts told CNBC. "There are several local Chinese companies that produce chips to compete with Nvidia," said Brady Wang, associate director at Counterpoint Research. Examples of these local AI chipmakers include tech powerhouse Huawei and the partially state-owned and publicly listed Cambricon Technologies, which designs GPUs. Shares of Cambricon were up over 10% in the past five trading days amid news of the latest Nvidia controls. The stock is up over 400% in the past 12 months. These local competitors now have greater impetus and opportunity to grow and improve their solutions, Wang said, adding that he expects that demand for their GPUs will increase.

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.

Analysts warn US could be handing chip market to China

As the Trump administration attempts to choke off exports of strategically important computer chips to China, experts say the effort might well backfire, fueling innovation at Chinese firms that could help them seize the world semiconductor market. "What's actually happening is that the US government right now is handing China a big win as it tries to get their own chip business going," said Jack Gold, principal analyst at J.Gold associates. "Once they're competitive," he told AFP, "they'll start selling around the world and people will buy their chips." When that happens, he added, it will be difficult for US chip makers to reclaim lost market share. Silicon Valley semiconductor star Nvidia and its US rival Advanced Micro Devices (AMD) expect big financial hits from new US licensing requirements for semiconductors exported to China, they notified regulators this week. Nvidia expects the new rules to cost it $5.5 billion, while AMD forecast it could sap as much as $800 million from the company's bottom line, according to filings with the US Securities and Exchange Commission (SEC). Administration officials told Nvidia it must obtain licenses to export its H20 chips to China because of concerns they may be used in supercomputers there, the company said. The United States had already restricted exports to China, the world's biggest buyer of chips, of Nvidia's most sophisticated graphics processing units (GPUs), designed to power top-end artificial intelligence models. Nvidia essentially developed the H20 chip for the Chinese market, aiming to maximize performance while meeting previous US export rules, but the new licensing requirements pose a roadblock, according to Gold. For AMD, the new US export control measure applies to its MI308 GPUs, which are designed for high-performance applications like gaming and artificial intelligence, it said in a filing. It noted that there is no guarantee licenses for sales to China will be granted. Opportunity for China? Independent tech analyst Rob Enderle predicted Chinese chip makers -- likely led by the huge Huawei corporation -- will ramp up efforts to snatch the lead in the market. "It's going to be a godsend for China as they spin up their own microprocessor business," Enderle said of the tightened US export rules. "This will be a really quick way to hand over US leadership in microprocessors and GPUs." The Chinese government has ample resources and motivation to bolster its chip industry, according to Gold. He said while US President Donald Trump might think he can "bully people" to achieve his objectives, "the worldwide economy is not like that." Instead, Trump's tariffs have alienated allies, increasing their incentive to turn to China for chips, the analyst said. "Across the board, this is going to create real problems for US companies competitively," Enderle said. "Companies located overseas are suddenly going to be in much better shape to compete." Nvidia chief executive Jensen Huang has said publicly that the AI chip powerhouse can comply with the new US requirements without sacrificing technological progress, adding that nothing will stop the global advancement of artificial intelligence. "Nvidia is one of the most important pieces in this (US) chess game with China," Wedbush analyst Dan Ives said in a note to investors. "The Trump administration knows there is one chip and company fueling the AI Revolution and it's Nvidia," he said, and so it placed "a 'Do Not Enter' sign in front of China" to slow its progress. Ives warned, however, that the chip wars are not over. He expects "more punches to be thrown by both sides."

Nvidia stock slips as U.S. curbs backfire, boosting China's chip ambitions

Nvidia (NVDA) stock fell about 3% Monday morning as investors digested growing fallout from the Biden and Trump administrations' efforts to curb the company's chip sales to China. The latest restrictions -- announced last week by the White House -- tighten the noose on Nvidia's ability to sell its advanced AI chips abroad. Now Chinese competitors appear ready to fill the gap. A sharp blow came Monday from reports that Huawei plans to begin mass shipments of its own advanced AI chip -- the 910C -- as early as next month. The move underscores China's accelerating effort to sidestep U.S. technology restrictions, and positions Huawei, one of China's largest tech companies, as a potential beneficiary of the crackdown on Nvidia. Analysts at Jefferies (JEF) told CNBC (CMCSA) the new export rules may ultimately "do more to help Chinese chip companies than hurt them," by forcing domestic buyers to pivot away from U.S. suppliers. Meanwhile, Nvidia CEO Jensen Huang traveled to China last week for damage control, attempting to reassure partners and regulators that the company still wants to do business there. The White House's tighter restrictions -- part of a tech containment strategy and one more front in the administration's trade war -- specifically target Nvidia's H20 chip, a product originally designed to comply with earlier export rules. The decision marks a strategic shift: a U.S. willingness to inflict damage on its own most valuable semiconductor company to prevent China from gaining access to leading-edge AI tools. Beijing, for its part, has slammed the U.S. approach and President Donald Trump's attempts to pressure other countries to cut their own trade with China. On Monday, China's foreign ministry said it firmly opposes any trade agreements between the U.S. and third-party countries "at the expense of China," framing the moves as aggressive rather than defensive. Shares of Nvidia are down about 15% in the last month. The Nasdaq has fallen 9% over the same period, while the S&P 500 is down 8%. Nvidia's global significance helps explain the U.S. market's swift reaction. With a market cap approaching $2.5 trillion, it's not only the world's most valuable chipmaker, but the foundational force in AI infrastructure -- powering data centers, large language models, and emerging technologies across sectors. Analysts estimate Nvidia controls more than 80% of the AI training chip market, making it a linchpin in the global tech arms race. Its dominance also means Nvidia's stock movements can sway the entire U.S. market. The company now makes up more than 6% of the Nasdaq 100 and about 5.5% of the S&P 500. As a result, Washington's deepening trade war with China isn't just geopolitical theater -- it's triggering real volatility and wiping out investor value across indexes, with Nvidia squarely in the middle of the storm.

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.

Nvidia Stock Furthers Slide on US-China Trade Tiff

Previously, Nvidia said a new licensing requirement for its key H20 semiconductors could cost $5.5 billion in the first quarter. Nvidia (NVDA) shares headed lower for a third straight session Monday on continuing concerns the artificial intelligence (AI) chipmaker could face a major economic hit from the trade fight between the U.S. and China. CEO Jensen Huang talked about the potential impact of new Trump administration tariffs in a visit to China last week, telling China-owned CCTV, "The increased restrictions have impacted our company significantly." Huang pointed out the importance of China to Nvidia's business, and that the company "will continue to make significant efforts to optimize our products to comply with regulations and continue serving the Chinese market." According to reports, Huang met with several government officials, including Ren Hongbin, head of the China Council for the Promotion of International Trade, as well as Liang Wenfeng, founder of Chinese AI research firm DeepSeek, which stunned the tech world earlier this year when it said it produced an AI product at a much lower cost than traditional models. Also last week, Nvidia reported in a regulatory filing that it was advised by U.S. officials that it would need a license to export its key H20 AI chips to China, and that requirement could result in up to $5.5 billion in charges in the first quarter. Shares of Nvidia fell nearly 4% soon after markets opened Monday. They have lost more than a quarter of their value this year.

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.

ETtech Explainer: How Trump tariffs hit Nvidia's China business, and stock

The US has tightened curbs on export of high-end AI chips to China for the third time, which has exacerbated the pain for semiconductor major Nvidia and its peers amid the Trump tariff-led global uncertainty. As tech stocks lead index routs, we take a deeper look what the barriers could mean for technology and trade.The ongoing trade tensions between the United States and China have escalated once again, putting Nvidia's export business at risk and jeopardising $5.5 billion in potential sales. On Thursday, Nvidia CEO Jensen Huang traveled to Beijing to meet with senior Chinese officials, just days after the US export restrictions were announced. The visit by Huang can be seen as an effort to stabilise Nvidia's business in China despite the latest curbs. In line with this, ETtech takes a deeper look at the case and its impact on tech stocks. What's happening? On April 14, the US government informed Nvidia that its H20 AI chips would require special export licenses to be sold to China. The following day, Nvidia confirmed the development in a stock market filing, warning that the new rules could significantly impact revenue as the H20 chips accounted for 13% of sales in fiscal 2024. Nvidia is a US-based tech company that manufactures advanced computing chips, especially graphics processing units (GPUs) which are used in a range of sectors including artificial intelligence (AI), data centers, and supercomputers, among others. This marks the third time since October 2022 -- when Joe Biden was in the White House -- that the US Commerce Department's Bureau of Industry and Security (BIS) has imposed limits on the capabilities of AI chips exported to China. What are the US curbs on sales to China? The US has tightened restrictions on Nvidia's H20 AI chips over fears they could still boost China's AI capabilities, despite being designed to comply with earlier export controls. While export of more powerful chips like Nvidia's H100 to China were already banned, the rise of Chinese AI firms like DeepSeek -- which claims ChatGPT-like performance using less advanced hardware -- has raised new concerns in Washington. Demand for the H20 from Chinese tech giants like Tencent, Alibaba, and ByteDance has surged, but without a grace period for the new rules, Nvidia expects a $5.5 billion loss from unfulfilled orders. The H20 chips -- a modified, lower-powered version of Nvidia's high-end H100 -- were developed to meet earlier US export rules introduced in October 2023. Those regulations banned the sale of cutting-edge AI hardware to China, pushing Nvidia to adjust its offerings in order to maintain a foothold in the crucial Chinese market. Why does it matter? Until now, Nvidia's H20 chip was central to China's AI push, powering DeepSeek's low-cost ChatGPT rival, R1. Its release shocked the global tech industry and sparked a wave of AI investments across China. Even though the H20 chip was designed to bypass US export bans, it's far less powerful than Nvidia's top chip, the H100. Specifically, it has only 14% of the compute throughput of the H100, but good enough for China's current needs. However, the less powerful chip like the H20 is still enabling major AI developments in China, leading to rising concerns in the US. According to a report by BBC, the move may push China to accelerate domestic chip development, though the US curbs are unlikely to significantly stall its AI ambitions. How does China react to this? The impact of US export restrictions is already visible in China. As of late March, Chinese server maker H3C reported shortages of Nvidia's H20 processors, which are now nearly sold out. Key Chinese tech giants like Alibaba, Tencent, and ByteDance, who depend on Nvidia's AI chips, are also expected to face disruptions. The new US export restrictions could cost Nvidia up to $15 billion annually in lost sales, on top of $5.5 billion in special charges already anticipated. These losses are creating an opening for Chinese AI chipmakers like Huawei, Cambricon, and H3C, which are rapidly working on homegrown alternatives. Chinese AI firm DeepSeek is already using Huawei's Ascend 910C processor, which is now seen as China's most advanced domestic rival to Nvidia's chips. While partially state-owned Cambricon, founded in 2016, is smaller, its stock has surged nearly fivefold in a year, reflecting strong investor confidence. Huawei, meanwhile, remains privately held. What's the long-term impact? The US export restrictions are shaking up the semiconductor market, and Nvidia and AMD are feeling the brunt of it, with their stocks tumbling as investors react to the uncertainty. This coincides with global uncertainty sparked by the Trump tariffs. Some analysts believe Nvidia can absorb the financial hit from US export restrictions due to its size, but the strategic damage is more serious. The new rules make it much harder for Nvidia to sell in China -- a key market for AI chips. Analysts from Bank of America and Morgan Stanley caution that the new rules, particularly those governing AI diffusion set to take effect in May, could broaden the impact to a larger range of tech firms. These expanding limitations might restrict US companies from obtaining licenses to sell AI-related products to China and other countries. Also Read: Analysts warn US could be handing chip market to China Apart from Nvidia's expected $5.5-billion impact, other US chip equipment makers could see a hit of about $1 billion yearly due to the levies. Chipmaker Advanced Micro Devices (AMD) also reported it expects to take an $800 million loss due to the US government's new restrictions on sales to China, as noted by ET. The World Trade Organization (WTO) has also cut its global trade growth forecast for 2025 to 2.2%, citing mounting trade barriers like US tariffs and tech restrictions. There's also a wider concern that these restrictions could speed up China's push to build its own advanced chips. Companies like Huawei and Cambricon are already working to reduce their reliance on US technology, and while their products still trail in software, they're catching up fast. China's imports of US services have grown significantly, reaching $55 billion in 2024, contributing to a $32 billion US services trade surplus. Now, Beijing is threatening to cut back, notably by reducing imports of US films and discouraging Chinese citizens from traveling to or studying in the US. Tech stocks take a hit A day before Huang's Beijing visit, Nvidia shares dropped 6.87% on Wednesday, following a sharp decline in premarket trading. The tech-heavy Nasdaq Composite declined 3%, driven largely by the fall in Nvidia shares. Before markets closed for the long Easter weekend, Nvidia stocks were down 2.93%, while the Nasdaq Composite was down 0.13% at the end of trade on Thursday. These movements reflect investor concerns about the long-term impact of the trade restrictions on global tech and AI growth

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 Not Acting In US Interests, Says Chamath Palihapitiya -- Questions, How Alibaba Or DeepSeek Are One Step Ahead - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Chamath Palihapitiya, known as the "SPAC King," has voiced concerns over Nvidia Corporation's NVDA and accused the company of not acting in the best interest of the U.S. What Happened: In an episode of the All-In Podcast that was released over the weekend, Palihapitiya criticized Nvidia for its alleged efforts to bypass U.S. export controls, which were designed to limit China's access to cutting-edge AI chips. "How is it that Alibaba shows up with something incredible, DeepSeek shows up with something better," Palihapitiya asked, indicating that Nvidia's chips may be finding their way into Chinese hands. He noted that after the U.S. banned the sale of top-tier GPUs like the A100 and H100 to China, Nvidia quickly rolled out slightly modified versions -- the A800 and H800 -- which reduced data transfer speeds just enough to meet export rules, while still offering strong performance. See Also: Netflix Debuts OpenAI-Backed Search Engine That Lets You Discover Movies And TV Shows Based On Emotions, Not Just Titles Nvidia also introduced the H20 chip, specifically designed for the Chinese market to comply with updated U.S. regulations, yet still delivering significant computing power, Palihaptiya said. "You have a 2017 plan that they've been executing against, which is to say, we want to dominate this space. And you have an American company that has been working around the guidelines at every turn to try to land silicon into the hands of China," the billionaire investor said. White House-appointed 'AI and Crypto Czar' David Sacks echoed Palihapitiya's concerns, pointing out the growing issue of export controls evasion. Sacks highlighted an incident involving Taiwan Semiconductor Manufacturing Co Ltd TSM, which faced fines for circumventing export restrictions. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Nvidia did not immediately respond to Benzinga's request for comments. Why It's Important: Palihapitiya's statements are part of a broader debate on U.S.-China relations and the control of AI technologies. The White House has imposed an indefinite export ban on Nvidia's H20 chips to China, prompting the company to warn of a potential $5.5 billion hit to its quarterly revenue, according to a recent filing. Notably, Nvidia CEO Jensen Huang was on a high-level tour of China last week. In February, reports revealed that Chinese tech giants Tencent Holdings TCEHY, Alibaba Group BABA, and ByteDance significantly increased their orders for Nvidia's H20 AI chips, spurred by the rise of DeepSeek's cost-efficient AI models. DeepSeek's R1 model, reportedly developed for less than $6 million, has outperformed top U.S. models -- including those from OpenAI. Price Action: Nvidia shares have fallen 26.67% year-to-date but remain up 27.55% over the past 12 months, according to Benzinga Pro data. Benzinga Edge Stock Rankings gives Nvidia a strong growth score of 94.80%. Click here to see how it stacks up against TSMC, Alibaba, Tencent, and other major tech players. Photo Courtesy: Kathy Hutchins 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$110.013.05%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum91.90Growth73.17Quality49.84Value82.84Price TrendShortMediumLongOverviewNVDANVIDIA Corp$101.27-3.08%TCEHYTencent Holdings Ltd$58.601.38%TSMTaiwan Semiconductor Manufacturing Co Ltd$152.190.34%Got Questions? AskWhich AI chip manufacturers could benefit from Nvidia's issues?How might Tencent leverage Nvidia's challenges?Is Alibaba poised to capture market share from Nvidia?What impact will export controls have on U.S. tech stocks?Could DeepSeek disrupt the AI chip market further?Which companies are most vulnerable to Nvidia's supply chain shifts?How will Taiwan Semiconductor adapt to new regulations?Are there investment opportunities in companies avoiding U.S. sanctions?What sectors will feel the pinch from Nvidia's export restrictions?How will U.S.-China relations affect tech investments?Powered ByMarket News and Data brought to you by Benzinga APIs

Huawei Prepares For Bulk Shipment Of New Advanced AI Chip As China Seeks Nvidia Alternatives: Report - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

In the wake of China's search for domestic alternatives to Nvidia's NVDA H20 chip, Huawei Technologies is reportedly preparing to start mass shipments of its advanced 910C artificial intelligence chip to Chinese customers as early as next month. What Happened: The 910C chip from Huawei represents an architectural refinement rather than a groundbreaking technological leap. It reportedly matches the performance of Nvidia's H100 by integrating two 910B processors into a single package using advanced integration methods, effectively doubling the computing power and memory capacity of the original 910B, as reported by Reuters on Wednesday. According to Paul Triolo, a partner at the consulting firm Albright Stonebridge Group, following the U.S. administration's decision to require an export license for Nvidia's H20 chip sales, the 910C has the potential to become the preferred hardware for Chinese AI model developers. Washington's restrictions on China's access to Nvidia's advanced AI products have opened up opportunities for Chinese GPU startups like Moore Threads and Iluvatar CoreX to challenge Nvidia's market dominance. Doug O'Laughlin, a semiconductor analyst, told CNBC earlier on Monday, "With NVIDIA's H20 and other advanced GPUs restricted, domestic alternatives like Huawei's Ascend series are gaining traction." SEE ALSO: Joe Rogan Paints A Picture Of Trump: In Between Golf Swings, He's On The Phone With Other Presidents: 'We're Going To Need More Money!' Why It Matters: This development comes on the heels of the U.S. government's new license requirements for selling AI-focused chips -- Nvidia's H20 and AMD's AMD MI308 -- to China, Hong Kong, Macau, and several D:5 countries. The move led Nvidia to take a $5.5 billion inventory charge, effectively preparing for a complete block in shipments. Meanwhile, CEO Jensen Huang continued his high-profile tour in China including discussions with central government officials in Beijing on Friday. Notably, Beijing also invited many other U.S.-funded companies besides Nvidia to invest more in China. These geopolitical tensions have created a unique opportunity for Huawei and other Chinese tech firms to fill the void left by Nvidia's restricted access to the Chinese market. Nevertheless, analysts opine that Huawei and other local chip makers are far behind Nvidia's H20 chip in terms of advancement. Phelix Lee, a Morningstar equity analyst specializing in semiconductors, is 'very skeptical' that Chinese chip foundries can produce enough H20 GPU alternatives to meet tech companies' demand in the near future. Benzinga's Edge Rankings highlight strong momentum and growth rankings for Nvidia in the 56th and 95th percentiles, respectively. Curious how other stocks stack up? Click here to uncover growth and momentum scores for top stocks. Over the past 5 days, Nvidia stock declined 6.67%. During the pre-market session on Monday, it slumped 2.89%. READ MORE: Trump Offered An Olive Branch Twice This Weekend, Says Kevin O'Leary -- It's Time For China's Xi To Take It Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMDAdvanced Micro Devices Inc$85.58-2.19%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum12.80Growth66.56Quality83.22Value17.55Price TrendShortMediumLongOverviewNVDANVIDIA Corp$98.01-3.43%Got Questions? AskWhich Chinese tech firms will benefit from Nvidia's absence?How will Huawei's 910C chip reshape the AI market?Could Moore Threads emerge as a major player?What impact will U.S. export restrictions have on Nvidia?How might AMD respond to increasing competition?Is there potential for Chinese semiconductor stocks to rise?What opportunities exist in AI chip development in China?Will Nvidia's inventory issues create buying opportunities?Which startups could thrive in the new landscape?How will geopolitical tensions affect global tech investments?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia's Jensen Huang Meets Shanghai Mayor Amid Fresh US Chip Curbs Nvidia's Jensen Huang Meets Shanghai Mayor Amid Fresh US Chip Curbs - NVIDIA (NASDAQ:NVDA)

Nvidia Corp. NVDA CEO Jensen Huang continued his high-level tour in China with a meeting in Shanghai on Friday, following discussions with central government officials in Beijing a day earlier. The visit comes amid tightening U.S. restrictions on chip exports to China, which have created headwinds for American semiconductor firms. Huang's two-day itinerary included a sit-down with He Lifeng, China's vice-premier overseeing trade relations with the U.S., in a move widely interpreted by Chinese media as a sign of Nvidia's long-term commitment to the region, South China Morning Post reports. Also Read: Cathie Wood's Crypto Shuffle: Pours $5.2 Million Into Newly Listed Solana Staking Fund, Dumps Bitcoin ETF And Buys Robinhood Dip On Friday, Shanghai Mayor Gong Zheng welcomed Huang, highlighting the city's investor-friendly policies and industrial strength. Huang, in turn, called Shanghai a vital part of Nvidia's global research and development footprint, citing the city's market scale, sophisticated client base, and mature tech ecosystem as core advantages, the report adds. Huang emphasized the transformative potential of artificial intelligence, advocating for stronger global cooperation to harness its benefits. He reiterated Nvidia's intention to maintain robust ties with Chinese partners and encouraged cross-border collaboration to drive innovation and prosperity. The visit comes at a pivotal moment for Nvidia. The company's stock has slipped nearly 25% over the last quarter. Meanwhile, the U.S. government recently announced that Nvidia would require a special license to export its H20 chips -- products specifically tailored for China under prior export rules. The new restriction could cost the company an estimated $5.5 billion in lost sales, South China Morning Post adds. Chinese tech companies, which rely heavily on GPUs like Nvidia's for AI training, have been ramping up infrastructure to support domestic AI development. After the unveiling of a low-cost AI model by local startup DeepSeek, China has doubled down on building national computing hubs to compete globally. Read Next: US-Listed Chinese Stocks Face $250 Billion Forced Selling Risk As Delisting Fears Emerge: What Investors Need To Know Image: Shutterstock/jamesonwu1972 NVDANVIDIA Corp$101.27-3.08%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum70.23Growth94.80Quality97.23Value7.30Price TrendShortMediumLongOverviewGot Questions? AskWhich semiconductor companies will adapt to new rules?How might Nvidia pivot its strategy in China?What AI startups could benefit from Nvidia's challenges?Which Chinese tech firms are investing in local AI infrastructure?Could domestic chip manufacturers see a surge in demand?How will AI development change investment dynamics globally?Which stock sectors are vulnerable due to export restrictions?Are there alternative tech investments to consider in light of Nvidia's issues?How will global partnerships evolve in the semiconductor space?What market trends could emerge from China's AI push?Powered ByMarket News and Data brought to you by Benzinga APIs

NVIDIA Shares Gutted By 5%+ After China Reportedly Readies Equivalent AI GPU Shipments

NVIDIA shares are down by 5.6% today after a report shared that China's Huawei has started to prepare its new artificial intelligence chip for shipments after the latest round of US sanctions on the country. The Trump administration recently announced that NVIDIA would require a license to sell its H20 AI GPUs to China. The H20 was the highest-end NVIDIA chip available to China, and the restriction limits the ability of Chinese companies to access the latest AI technologies for their software ecosystem. The chip that Huawei plans to ship is the Ascend 910C, a design upgrade over its predecessor instead of being a new device, says the report. NVIDIA's stock has been under consistent pressure this year since the DeepSeek selloff wiped off nearly $600 billion in market value within a day. The latest dip came last week after the Trump administration announced that it would require an export control license for sales of the H20 AI GPU to China. The H20 was the latest NVIDIA AI chip that Chinese firms could order, and with domestic alternatives from Huawei being unable to match its performance, it was heavily demanded in the country. After the US government's announcement, NVIDIA CEO Jensen Huang stressed that his firm would develop a new chip that complies with the latest rules; however, while NVIDIA seeks to refine its products once again, a report from Reuters shares that Huawei is preparing to ship its latest Ascend 910C AI chip after the new US export control rules. According to the sources, the 910C is capable of meeting the performance of NVIDIA's H100 AI GPUs. The report isn't the first time that the chip has surfaced in the discourse surrounding domestic Chinese AI chips. In March, a report from the Center for Strategic and International Studies (CSIS) outlined that China could manufacture one million of these GPUs. The report outlined that the 910C is made by combining two 910Bs (a smaller variant), and it added that the one million figure was contingent on China being able to achieve 100% defect-free production. Reuters' sources corroborate the 910C's production process, and as per the CSIS, the Ascend 910B and 910C are manufactured on dies by the Taiwan Semiconductor Manufacturing Company (TSMC). TSMC has asserted that its last shipments to Huawei were in September 2020, but the US government is investigating products by the Chinese firm Sophia which are suspected to have been made by TSMC but made their way to Huawei. As per CSIS' sources, TSMC manufactured more than two million Ascend 910B dies, and with one 910C integrating two 910Bs, Huawei can theoretically produce one million 910Cs. However, chip integration is a complex process that typically leads to some wastage. China's domestic chip manufacturer, the Semiconductor Manufacturing International Corporation (SMIC), has struggled to overcome US restrictions and is widely believed to be stuck on the older 7-nanometer semiconductor manufacturing technology.

What's Going On With Nvidia Stock Monday? - NVIDIA (NASDAQ:NVDA)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. Nvidia Corporation NVDA shares are trading lower on Monday after Huawei announced it's preparing a new artificial intelligence (AI) chip as an alternative to Nvidia's H20 line. The Details: Huawei plans to begin shipping its advanced 910C AI chip to customers in China as soon as next month, according to Reuters. The chip achieves performance on par with Nvidia's H100 chip by using two 910B processors combined into a single unit through advanced integration methods. Last week, President Donald Trump's administration introduced licensing requirements for the sale of Nvidia's H20 chips to China. A license will also be required for any chips that match the H20's memory bandwidth, interconnect bandwidth or a combination of both. Nvidia shares may be lower as investors assess the competitive threat posed by Huawei and its novel chip. The recent export restrictions on Nvidia's H20 chips may also be fueling concerns about the company's ability to maintain its foothold in the Chinese market. What Else: Deteriorating U.S.-China trade relations continue to weigh on the stock as well. For instance, the Trump administration has imposed a wide range of tariffs on China. In response, China has filed a complaint with the World Trade Organization. Trump has now raised concerns about escalating tariffs, warning that they could further strain U.S.-China trade relations. Such tensions add uncertainty for companies like Nvidia that rely on the Chinese market, where higher tariffs and regulatory hurdles could hurt sales and long-term growth. Related Link: Tesla Rival BYD Targets Japan's Minicar Market With For New Affordable EV NVDA Price Action: At the time of writing, Nvidia stock is trading 6.30% lower at $95.10, according to data from Benzinga Pro. Image: via Shutterstock NVDANVIDIA Corp$95.21-6.19%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum55.88Growth94.78Quality97.24Value7.69Price TrendShortMediumLongOverviewGot Questions? AskWhich tech companies could benefit from Nvidia's drop?Is Huawei's AI chip a game changer for the market?How might Nvidia's competitors capitalize on these events?Will Chinese tech firms gain more market share?What are the implications for semiconductor stocks in the U.S.?How will tariffs impact Nvidia's growth in China?Which emerging markets may see increased investment?Are there investment opportunities in alternative AI chips?Could global supply chains shift due to these tensions?How will U.S.-China relations affect tech investments?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia Stock Fell Nearly 5% On Monday After Huawei Mass Shipping AI Chips In China Report Surfaced, But Bernstein Analyst Says It Doesn't Matter: 'They Can't Compete Anyway' - NVIDIA (NASDAQ:NVDA)

On Monday, Nvidia Corporation NVDA dropped by 4.51% after a report revealed that Huawei Technologies is ramping up AI chip production, but a Bernstein analyst downplayed the significance, saying the AI chip giant "can't compete" anyway in the Chinese market due to export restrictions. What Happened: Bernstein analyst Stacy Rasgon told Yahoo Finance that Nvidia's operations in China have been severely constrained due to U.S. export controls, which prevent the company from selling its top-tier AI chips like the A100 and H100. "I don't see why it matters. Nvidia is not allowed to sell anything in China anymore," he stated, adding, "They can't compete anyway, they're not allowed." Rasgon was referring to the White House's imposition of an indefinite export ban on Nvidia's H20 chips to China, prompting the company to warn in a filing last week that it could take a potential $5.5 billion hit to its quarterly revenue. See Also: Nvidia's Jensen Huang Meets Japanese PM To Discuss AI's Growing Energy Needs "We've basically just handed the China AI market to Huawei anyway, so like I'm not surprised by any of this at all," the analyst said. Why It's Important: Huawei's decision to mass ship its advanced 910C AI chip to local customers next month was reported by Reuters on Monday. The 910C chip from Huawei, designed to be more competitive with Nvidia's offerings, combines two previous Huawei chips into a single package, effectively doubling its performance. This move positions Huawei to take advantage of Nvidia's absence in China's AI chip market, a situation exacerbated by the latest U.S. regulations requiring licenses for Nvidia's lower-tier chips as well. Nvidia CEO Jensen Huang also undertook a high-level tour of China last week. In fiscal 2024, China contributed $17 billion in revenue, making up 13% of Nvidia's total sales. Meanwhile, Chamath Palihapitiya, often referred to as the "SPAC King," has expressed concerns about Nvidia, alleging that the company may not be prioritizing the best interests of the U.S. Price Action: Nvidia's stock has dropped 29.93% since the beginning of the year but is still up 21.87% over the last 12 months, according to Benzinga Pro data. Benzinga Edge Stock Rankings assigns the company a robust growth score of 94.78%. Click here to see how it compares with other leading tech firms. Photo Courtesy: Hepha1st0s on Shutterstock.com Read More: 'Most People Don't Have The B**ls 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$96.65-4.77%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum55.88Growth94.78Quality97.24Value7.69Price TrendShortMediumLongOverviewGot Questions? AskWhich AI chip companies could benefit from Nvidia's decline?How will Huawei's 910C chip impact the AI market?What opportunities exist for U.S. tech firms in China's AI sector?Is Nvidia likely to recover in the near future?How might semiconductor ETFs respond to these developments?Which companies can fill the void left by Nvidia in China?Could U.S. regulations create a market for alternative chips?What implications does this have for global supply chains?How will investors react to Nvidia's revenue forecast?Are there emerging markets benefiting from U.S. tech restrictions?Powered ByMarket News and Data brought to you by Benzinga APIs

Nvidia Stock Has Fallen Over The Past Three Months: What's Going On? - NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA shares have faced extreme selling pressure over the last three months, down nearly 30% as of Tuesday. Here's what you need to know. What To Know: Yesterday Huawei announced plans to begin shipping its advanced 910C AI chip to customers in China as soon as next month. Huawei said it combined two 910B processors into a single unit using advanced integration methods, resulting in performance comparable to Nvidia's H100 chip. Meanwhile, President Donald Trump's administration recently imposed licensing requirements on Nvidia's H20 chips sold to China, as well as any chips with equivalent performance. In addition to export restrictions, the Trump administration has placed tariffs reaching 145% on imports from China. China has retaliated with tariffs of 125% on U.S. goods. Trump has also voiced concern that further tariff escalation could strain the U.S.-China relationship. Huawei's new chip and added licensing requirements on certain chip sales to China may be fueling investor concerns about Nvidia's ability to maintain its foothold in the Chinese market. Tariffs and a deteriorating trade relationship could further threaten demand for the company's products in the region. What Else: According to Wccftech, Nvidia is rumored to be partnering with Chinese artificial intelligence (AI) firm DeepSeek to develop custom chips tailored for the Chinese market. The emergence of DeepSeek has prompted some investors to question the massive expenditures by American tech firms on AI development. DeepSeek claims it trained its R1 model for under $6 million, a stark contrast to the billions spent by U.S. companies. Related Link: Here's How Much $100 Invested In Marvell Tech 10 Years Ago Would Be Worth Today NVDA Price Action: At the time of writing, Nvidia shares are trading 2.09% higher at $98.87, according to data from Benzinga Pro. Image: via Shutterstock NVDANVIDIA Corp$99.252.41%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum53.85Growth94.77Quality97.29Value7.95Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

US Tech In Tariff 'Twilight Zone' Says Dan Ives: Nvidia Chip Restrictions In China, Huawei Steps Into The Void - NVIDIA (NASDAQ:NVDA)

The U.S. tech sector just walked into a geopolitical buzzsaw, and NVIDIA Corp NVDA may be the first big casualty. As trade tensions ratchet up and tariff policy gets more unpredictable, AI leaders such as Nvidia are getting boxed out of China just as competitors like Huawei prepare to strike. Wedbush Securities analyst Dan Ives isn't mincing words: "The U.S. tech industry in particular is front and center in this Category 5 storm." The spark? A chaotic rollout of new trade barriers, including a ban on Nvidia's H20 chip in China -- a move that Ives says is "cutting U.S. tech at the knees and helping steamroll China tech ahead." Read Also: Nvidia-Backed AI Startup Boasts 'Extremely Rapid Revenue Growth' - JPMorgan Initiates With Overweight In contrast, Huawei is already gearing up to ship its rival 910C AI chip -- comparable to Nvidia's H100 -- by early May. Chinese firms, blocked from Nvidia's offerings, are "picking up the phone and calling Huawei," according to Ives. In short, the U.S. is losing leverage and China is gaining momentum. The stakes are massive. "For the first time in 30 years, the U.S. is ahead of China when it comes to AI," Ives notes. But that edge could erode fast. With supply chains in disarray and CEOs unsure of the rules, even bellwethers such as Apple and Tesla may struggle to stick to product road maps. Ives is urging policymakers to act: "This game of high-stakes poker from the White House needs to result in trade deals ASAP." Without progress, the market could "go into bunker mode," by slashing spending, hiring and investment. In Ives' words, "the longer this drags on, U.S. tech takes a step back... while China tech sees tailwinds." Until then, welcome to the "economic Twilight Zone," says Ives. Read Next: Nvidia CEO Jensen Huang Earns Praise From Former Intel CEO Pat Gelsinger: 'Run Hard To Stay In The Front' Photo: Shutterstock NVDANVIDIA Corp$98.701.85%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum53.85Growth94.77Quality97.29Value7.95Price TrendShortMediumLongOverviewGot Questions? AskWhich Chinese tech firms might rise with Huawei's chip?How will Nvidia adapt to losing China market share?Which U.S. tech stocks are vulnerable to tariffs?Can Apple and Tesla maintain growth amid uncertainty?How are AI startups positioned for growth in the U.S.?What investment strategies can hedge against tariff risks?Which semiconductor companies will benefit from Nvidia's challenges?Are there opportunities in defense tech amid geopolitical tensions?How will the shift to Huawei's technology affect global markets?What sectors could see increased spending despite trade tensions?Powered ByMarket News and Data brought to you by Benzinga APIs

Analyst Sticks With Nvidia Despite Fallout From China Curbs - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

Following the H20 effective shipment ban to China on April 15, Nvidia Corp NVDA stock has declined 14%, versus the PHLX Semiconductor Sector's 8% and the S&P 500's 4%. BofA Securities analyst Vivek Arya noted four key concerns pressuring the stock. They included China sales, AI Diffusion Rules, gross margin return to mid-70% by the fiscal second half amid multiple sales cuts and cost pressures, and cloud capex visibility into calendar 2026. Also Read: Nvidia's Jensen Huang Meets Japanese PM To Discuss AI's Growing Energy Needs Of these four, Arya noted China and H20 exposure as generally de-risked and noted his revised fiscal 2026 and 2027 (roughly calendar 2025 and 2026) base case EPS of $3.97 and $5.74 fully baked into the cut. Gross margins could face modest cost inflation pressures, but are expected to generally improve throughout the fiscal second half as Blackwell gains scale and Blackwell Ultra ramps up. Cloud capex needs more quarters for CSPs to provide more visibility in the calendar for 2026. According to Arya, the upcoming AI Diffusion Rule remains the biggest near-term risk, with his worst-case scenario assuming another ~10% drop in sales and up to 11% of EPS shaved off from his new base case. However, even with this distressed scenario, the stock is trading at just 19 times calendar 2026 P/E today, well below the historical ~30 times median and typical ~23 times cycle trough. Arya reiterated Buy on Nvidia, noting the current stock volatility as an enhanced buying opportunity. However, he lowered the price target to $150 from $160, unchanged at 26 times calendar 2026 P/E, to reflect lower EPS. Arya's new base case assumptions for Nvidia and Advanced Micro Devices, Inc AMD now exclude sales of H20 and MI308 products, which now require licenses to ship to China. Arya assumed a ~4% sales and ~5% EPS impact for Nvidia and ~ a 3% sales and ~4% EPS impact for AMD in calendar 2026. Arya updated both models to reflect this impact and the one-time inventory/reserve charge ($5.5 billion Nvidia, $800 million AMD). For AMD, Arya's new $105 price target (down from $110) represents an unchanged ~20 times P/E or 0.9 times PEG off his new $5.29 calendar 2026 EPS, generally in line with the 1-2 times historical range for high-growth compute semis; as such, he reiterated his Neutral rating. Arya flagged Nvidia's global customer footprint and that up to 24% of fiscal 2025 (calendar 2024) sales ("billing" location) were from non-China Tier 2 or 3 countries, including 18% of sales billed in Singapore. While the exact mix of shipment locations is difficult to identify, Arya provided a worst-case scenario analysis where up to 5-10% of these sales could be restricted under the upcoming AI Diffusion Rule. In the 10% sales cut scenario, Nvidia EPS may decline by an additional 14% and 11% to $3.69 and $4.98 in fiscal 2026 and 2027 (calendar 2025 and 2026) from the current consensus $4.29 and $5.59 and his base case $3.97 and $5.74. Notably, Nvidia trades at 16.6 times off Arya's new base case calendar 2026 EPS (including the H20 ban) today. Even if he assumed the above worst-case 10% AI Diffusion restriction scenario, valuation remains attractive at 19 times calendar 2026 P/E or 0.7 times PEG, below the historic 1-2 times range for high-growth compute semis and below the 1.8 times median for other Mag-7 peers. Price Actions: NVDA stock is up 1.8% at $98.69 at last check Tuesday. AMD is up 1.50%. Read Next: Genuine Parts Sees Q1 Growth From Acquisitions, But Tariffs And Lower Sales Weigh On Results Photo: Shutterstock AMDAdvanced Micro Devices Inc$86.170.71%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum12.93Growth66.60Quality82.58Value17.87Price TrendShortMediumLongOverviewNVDANVIDIA Corp$98.571.71%Got Questions? AskHow will Nvidia's stock react post-China curbs?Which semiconductor stocks are undervalued now?Could cloud computing firms gain from Nvidia's challenges?How might AI companies exploit Nvidia's situation?Which foreign markets could benefit from Nvidia's shift?Will AMD face similar pressures as Nvidia?How will regulations affect semiconductor supply chains?What impact will AI Diffusion Rules have on competitors?Which investment funds focus on semiconductor opportunities?Are there emerging tech companies that could capitalize on this?Powered ByMarket 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

Nvidia Just Lost a $5.5 Billion Opportunity. This Fast-Growing Tech Stock Could Scoop It Up | The Motley Fool

Nvidia (NASDAQ: NVDA) just became the latest company to get hit by the trade war. On Wednesday, the stock tumbled after it announced that it would take a charge of up to $5.5 billion in the first quarter due to a new restriction on exports of its H20 chips to China. Those chips are less powerful versions of its popular artificial intelligence (AI) accelerators, and the policy is in keeping with increasingly tight restrictions on sending cutting-edge technology to China. The U.S. has pressured a number of other companies to restrict high-tech exports to China, including EUV lithography machine maker ASML. AMD also took a smaller $800 million write-down on the export policy impacting the H20 chip. However, these decisions have second-order effects, and one of them is that it's likely to make China invest more in AI chip technology, much like those restrictions helped lead to the development of DeepSeek's low-cost AI chatbot. One of the Chinese stocks that could take advantage of the restrictions on chip imports is Xiaomi (XIACF -0.75%), one of China's most diversified tech companies. Xiaomi makes smartphones, computers, electric cars, and other consumer electronics. It also makes money from advertising, online gaming, fintech, and chip design, which is one of its most promising growth opportunities. Xiaomi, which generated about $50 billion in revenue last year and has a market cap of $144 billion, has recently gotten into chip design, working on developing its own 3nm system-on-chips (SoCs) in-house for its phones and other devices. This would be China's first 3nm SoC, and it intends to begin production this year. Xiaomi is also making investments in AI, including building a 10,000 GPU cluster to develop AI models. The company has shown it has the ability to innovate quickly, as it released an electric car last year after just three years of development, and it has already sold 135,000 vehicles. AI chips would also be a good fit for its burgeoning auto business, especially if the company is working on an autonomous vehicle. The chip restrictions on exports from China are likely to expand as the trade war heats up, opening up more opportunities for Xiaomi and its peers, meaning there is more than $5.5 billion up for grabs here as American semiconductor companies like Nvidia are forced to retreat from the market. After years of underperforming the market, Xiaomi has surged in recent months, jumping 157% over the last year, even after pulling back since the trade war erupted a month ago. Those gains were largely a response to the success of its EV sedan, the Xiaomi SU7, and its prospects in the industry with future vehicles, including the new YU7 SUV, as well as plans to export those vehicles. The company also stepped up its investments in the new technology, raising $5.5 billion in a secondary stock offering. Xiaomi continues to deliver strong growth, with revenue up 35% to $50 billion last year, while adjusted net income jumped 41% to $3.7 billion. The company has given a roadmap of where it's going in technology, saying that it aims to invest in foundational core technologies, including integrating cutting-edge AI technology into its products and operations. The U.S. government's policy is effectively a protectionist measure for Chinese tech companies. While it might weaken China's overall competitiveness in AI and tech infrastructure, it also creates a large opening for a Chinese company to take that business. Xiaomi might be the direct winner, but it also looks poised to benefit from those restrictions and the potential backlash toward American companies in China, including potentially against Apple in smartphones or Tesla in EVs, two of its direct competitors. Xiaomi may not be on the radar for most U.S. investors, but if you're looking for an alternative to stocks like Nvidia and want exposure to the rapidly evolving Chinese AI and tech sectors, Xiaomi looks like a good choice.

Nvidia Stock Falls on Export Control Warning. Why This Could Be a Great Buying Opportunity. | The Motley Fool

Shares of Nvidia (NVDA 2.10%) tumbled after the company revealed that it will incur a $5.5 billion charge in the first quarter related to its H2O graphics processing units (GPUs) due to new export restrictions on the sale of its chips to countries like China. Nvidia's stock has had a tough start to 2025, with its share price down about 25% as of this writing. A dumbed-down version of its H100 and H200 GPUs, Nvidia's H20 chip was designed specifically to sell into the Chinese market to meet prior export control restrictions. These chips have lower bandwidth and slower interconnection speeds to meet export guidelines. However, it will now require an export license to China to sell any chips. China was Nvidia's fourth-largest geography in fiscal year 2024, with $17 billion in sales last year. However, last quarter, the company reported that its revenue from China had dropped by half compared to the period before the original export restrictions were implemented. DeekSeek's popular R1 model was supposedly trained on H20 chips. The H20 export ban will impact Nvidia's sales in China, which accounted for 13% of its $130.5 billion in total revenue for the last fiscal year. However, sales won't stop entirely, as Nvidia sells other chips, such as the L20 and L2, that aren't banned. Additionally, a sizable black market exists in China for Nvidia's chips. There is also no natural replacement for Nvidia's chips in China. Huawei has developed artificial intelligence (AI) chips manufactured by SMIC, but the Chinese foundry has limited access to the extreme ultraviolet (EUV) lithography tools used to manufacture advanced chips, such as GPUs. This is because EUV tools from ASML, the only maker of these systems, are also prohibited from being sold to China. Consequently, the supply of Chinese-made AI chips is limited. Given this, I wouldn't be surprised if sales of black market Nvidia chips to China increase. Nvidia could also start directing some of the manufacturing capacity dedicated to its H20 chips to other chips, such as Hopper and Blackwell. These chips are estimated to cost between 2 and 4 times the cost of an H20 chip, so there could be a benefit. Now, this doesn't just happen with a snap of the finger, but it is possible. Shifting to the older Hopper architecture will be easier since the H20 chips share the same die design. Blackwell uses a dual-die design, and Nvidia would need to secure more of Taiwan Semiconductor's Chip-on-Wafer-on-Substrate (CoWoS) advanced packaging capacity, which would make it more difficult and time-consuming. Blackwell is already capacity-constrained. As such, shifting capacity to Hopper could help in the near term, while transitioning to Blackwell would likely take considerable time, although it could provide a longer-term benefit. Overall demand for Nvidia's chips remains robust, though. Cloud computing companies are spending big on AI infrastructure to keep up with the increasing demands of their customers who run AI workloads through their data centers. The big three -- Amazon, Microsoft, and Alphabet -- plan to spend a combined $250 billion-plus on AI data center capital expenditures (capex) this year. Meanwhile, companies like OpenAI, Meta Platforms, and xAI have been spending heavily on building out their own AI infrastructure in a race to develop the best AI models. Meta's Llama 4 AI model and xAI's Grok 3 were both trained on 10 times as many GPUs as their prior versions. Enterprises have also begun increasing their AI infrastructure spending, as many look to deploy a hybrid cloud model. Nvidia predicts that AI data center capex will surpass $1 trillion by 2028. Even without China in the mix, that's a significant amount of potential growth for the company moving forward. It won't capture all the spending directed toward AI chips, but it will secure more than its fair share. The company has established a wide moat in the GPU space with its CUDA software platform and the extensive collection of libraries and tools it has developed to facilitate AI model training and speed up inference. Nvidia's stock is cheap enough at current levels that it can withstand any reduction in growth resulting from the loss of selling its H20 chips to China. The stock currently trades at a forward price-to-earnings ratio (P/E) of under 23 times this year's analyst estimates and a 0.44 price/earnings-to-growth (PEG) ratio, with numbers below 1 being considered undervalued. If you wiped away $15 billion in Chinese revenue, Nvidia's estimated revenue growth this year would go from 54% to 43%. Meanwhile, it would reduce its 2025 earnings per share by about $0.35 (using a 75% gross margin, 25% tax rate, and 24.4 million shares outstanding) to $4.10. That would be a forward P/E of about 25 times. So, even if most of its Chinese revenue were to disappear, Nvidia's stock would still look attractively valued. As such, this is a good time to start accumulating the stock while looking to add to more shares on any further pullback.

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.