- Nvidia predicts $ 5.5 billion in H20-Exort-related costs to China and other nations
- H20 chips were already intended to be optimized for the Chinese market
- Business shares are down, market capital remains below $ 3 trillion
NVIDIA faces a massive $ 5.5 billion quarterly fee due to new US export restrictions on its H20 AI chips intended to China and other destinations, with the company’s stock taking a decrease after revelation.
From April 9, the US government imposed a license for NVIDIA to export H20 chips to certain countries without any end date marked a precious change for the chipmaker.
The affected nations are China (including Hong Kong and Macau) and the D5 countries – Britain, South Korea, Estonia, New Zealand and Israel.
“The results of the first quarter are expected to include up to about $ 5.5 billion charges associated with H20 products for stock, purchase obligations and related reserves,” Nvidia said in a SEC archiving.
The technology giant noticed the state mandate license “addresses the risk of the covered products being used in or redirected to a supercomputer in China” -Nvidia’s fourth largest market after sale after the US, Singapore and Taiwan (via CNBC).
H20 chips are less advanced versions of NVIDIA’s H100/H200 chips using the 2022 jump architecture specifically designed to comply with the now dated US export restrictions for the Chinese market. In other regions, the company is now moving its focus to the next generatiton Blackwell chips.
In addition, Nvidia’s leaders have talked about the effects of the ongoing trade war.
“While he was awarded in the form of an” anti-China “measure, these rules would do nothing to improve US security,” said VP for government affairs down Finkle during the bite’s last days in office before Trump’s tariffs came into force.
NVIDIA shares are now at $ 112.20, down from one year height of $ 153.13. After spending two short periods as the world’s most valuable company, Nvidia’s market capital of $ 2,737 trillion now sets it in the third position behind Microsoft, with Apple in the first place and the only current $ 3-Billion (almost).
