Nvidia Faces $5.5B Hit Amid New U.S. Chip Export Ban to China

Nvidia is bracing for a $5.5 billion quarterly charge due to new U.S. export restrictions on its H20 AI chips, which are now subject to a licensing requirement for sales to China and other nations. These chips, projected to bring in $12–$15 billion in 2024, are now caught in escalating tech tensions.

The crackdown, aimed at preventing the use of advanced chips in foreign military AI development, triggered a 6% dip in Nvidia’s stock and raises fresh concerns over its dependence on China—its fourth-largest market. CEO Jensen Huang acknowledged rising competition, naming Huawei as a major rival for the second year.

Amid volatile markets and past losses tied to U.S.-China trade tensions, this move could further strain Nvidia’s revenue and its global AI chip dominance.

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