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A few days ago, Wall Street celebrated Nvidia’s “minimum rate status”, with Lynx Equity going as far as predict That the high -flying stock would quickly return to its reforms. However, the Trump administration has now upset a source of material income for the gpu giant, endangering this pink scenario in the process.
The markets recently sigh of relief when President Trump conceded to a global import rate of 10% For all trade partners in the United States unless China.
Then, in what unleashed the minds of rare animals to Wall Street, Trump temporarily went Cancel The prices imposed on the importation of semiconductors and electronic items (including Apple iphones) from China, reducing the effective rate rate on all Chinese imports from 145% to 104%. Note that imports of semiconductors, smartphones and other electronic items from China are currently subject to Tariff of 20%.
However, it seems that the Trump concession sequence is over. Note, Nvidia has now announcement That it plans to take out costs of up to 5.5 billion dollars in its first tax quarter 2026 (which ends on April 27) resulting from “stocks, purchase commitments and related reserves” for the H20 GPU specific to China.
For the benefit of those who may not know, the H20 is a seriously limited version of the H100 GPU, largely intended for the Chinese market. However, the Trump administration officially communicated to Nvidia on April 09, that, in the future, the H20 GPU will be subject to an “indefinite” export license. In addition, this restriction also applies to other CIs bearing similar memory and interconnection capacities.
Keeping in mind that Lynx Equity continues to assert that Nvidia, “with its servers AI gets supplies by most components outside the United States and assembled by Taiwan-based systems integrators, has built a multilayer strategy to avoid almost all American prices.”
However, recent Restrictions linked to the H20 could encourage Beijing to retaliate, especially since China has little to lose.