NVIDIA (Nvda) Actions sank up to 6% early Wednesday after the IA flea manufacturer revealed that it would take a 5.5 billion dollars of new surprise controls from the United States government on semiconductor exports to China.
Nvidia said in a regulatory deposit Late Tuesday evening that the United States government informed the company that it would require a special license for exports of its H20 chips specifically for the Chinese market to comply with American trade rules.
In particular, no license for GPU expeditions to China has never been granted, given the concern of the American government that fleas could be used to build AI superordinators in the country, Jefferies analyst, Blayne Curtis, wrote in an analysis according to the new that the last rule is indeed a ban.
From 9:43:02 had. Market open.
Other Wall Street analysts noted that the decision was a “surprise”, given A recent NPR report that the Trump administration had supported its plans to restrict the H20 fleas of Nvidia After a dinner with CEO Jensen Huang in Mar-A-Lago.
Nvidia said he would hear $ 5.5 billion in charges at his first quarter from the last border.
Find out more: How does Nvidia earn money?
Curtis de Jefferies has planned that the company will take an even greater blow to income – $ 10 billion in lost sales – in the next quarters. Curtis said that it is because the majority of the writing is linked to finished or partially finished goods rather than future supply agreements, which means that Nvidia will essentially have to throw billions of chips now non -Vendable rather than simply cancel future orders.
“The H20 ban has little sense for us,” wrote Bernstein Stacy Rasgon analyst in a note to investors early Wednesday. “H20 performance is low, well below the Chinese alternatives already available; a ban mainly puts the Chinese AI market in Huawei.”
Raymond James’ analyst Ed Mills wrote in his own note: “Restrictions on H20 fleas are a surprise, given the explicit approval of the product by the Biden administration and recent media reports that the American government returned from the prohibition of the product.”
Nvidia has manufactured several specialized tokens for China since 2022 – the A800,, H800,, L20, L2and the successor of the H800, H20 – to comply with Constantly evolving commercial rules While the United States seeks to restrict China access to the equipment necessary to innovate AI. China represented $ 17 billion, or 13% of NVIDIA income during its 2025 financial year, noted Rasgon.
For the context, the startup of Chinese AI Deepseek said it Used about 2,000 of the H800 chips now banned from Nvidia To train his latest model of artificial intelligence – a much cheaper feat than OpenAi training requirements. Deepseek announcement Rolling US markets earlier this year.