NVIDIA is a $ 5.5 billion hit as US chip export rules

Microchip Maker Nvidia said that $ 5.5 billion (4.2 billion pounds) will be struck after the US government tightened export rules to China.

The chip production giant in the center of the artificial intelligence (AI) will require licenses to export H20 AI chip to China, one of its most popular.

The rules present between the growing trade war between the United States and China, each other covers various goods with both countries.

NVIDIA shares were plunged about 6% in trade after the hour.

Nvidia said that the US government was allowed to be sold to China, including the H20 chip, including H20 Chip last week on Tuesday.

Tech giant federal officials recommended them to “be valid for an uncertain future.”

“The SuperComputer in China, which (government) license requirements, the SuperComputer in China, said that a supercomputer has been able to use or redirect,” said Nvidia.

The company refused to further comment on the BBC.

Mark Einstein, research on the other side, said that the NVIDIA corresponds to the estimates of $ 5.5 billion.

“This is, of course, this is something that NVIDIA can carry,” he said.

“But as we see in the last few days and weeks, this may be mainly negotiating tactics. This is not surprised to see only NVIDIA’s entire semiconductor ecosystem or some exceptions or changes to the tariff policy.” Einstein.

Chips remains a battlefield in the US-China race for technological advantageAnd the US President Donald Trump now wants to tourn of a highly complex and delicate production process that draws other regions to improve other regions.

NVIDIA’s AI chips have been the main focus of the US export control. Founded in 1993, it was popular by preparing the type of computer chips that first processed graphics for computer games.

Before the AI ​​revolution, the machine began to add features to the chips that helped to learn. Now it is seen as a main company to see how fast the AI’s technique is spread throughout the business world.

The company’s cost has taken a blow in January The opponent’s application of the EU application, Deepseek, other Chatbots said in a part of the price.

At that time, the United States was considered to be the guardian of the opponent’s technological achievement.

Nvidia said that $ 5.5 billion charges will be associated with H20 products for inventory, procurement liabilities and related resources.

Tech Buzz China Podcast Founder Rui Ma, the United States and China are waiting to be “fully short” if the EU semiconductor supply chains are left in place.

He added: “It does not mean that the US chips depend on the Chinese client” especially because of the excess of the information centers in China.