Overview

• Nvidia disclosed a $5.5 billion charge tied to new U.S. export restrictions on its H20 AI chip, designed for the Chinese market.
• Advanced Micro Devices (AMD) and ASML also reported significant financial impacts from the tightened export controls, with AMD taking an $800 million write-off.
• The restrictions are part of expanded measures under the Trump administration aimed at curbing China's AI capabilities, escalating the trade conflict between the two nations.
• Tech-heavy indices, including the Nasdaq, saw sharp declines as investor confidence eroded, with Nvidia's stock dropping nearly 7%.
• Analysts warn the restrictions could reduce Nvidia's future revenues by 10% and exacerbate long-term risks to U.S. tech competitiveness.