Overview

• Nvidia's H20 and Intel's Gaudi chips now require U.S. export licenses for sales to China, escalating restrictions on advanced AI technology.
• Nvidia announced a $5.5 billion charge tied to canceled H20 chip orders, reflecting uncertainty over obtaining export licenses.
• Semiconductor stocks, including Nvidia and ASML, plunged, erasing over $200 billion in market value as investors reacted to the new restrictions.
• Major Chinese cloud providers, such as Alibaba and Tencent, were reportedly unaware of the licensing rules and face supply uncertainties.
• The U.S. government’s policy aims to limit China’s access to high-performance chips that could enhance military and AI capabilities.