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3w ago

Nvidia Faces $5.5 Billion Hit as U.S. Tightens Chip Export Controls to China

New restrictions imposed by the Trump administration on AI chip exports deepen U.S.-China trade tensions, triggering financial losses and market volatility for tech companies.

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Technology companies like Meituan, Kuaishou Technology, and JD.com Inc. led the declines in the Hang Seng China Enterprises Index, which fell as much as 3.2%.
A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City, on April 15, 2025. Stocks slid Wednesday on renewed fears of tariffs.
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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.