NVDA
📉 Nvidia faces a $5.5 billion write-down due to US restrictions banning the export of its H20 AI chip, specifically designed for the Chinese market.
🏛️ The US government now requires specific licenses for Nvidia to export these advanced chips to China, citing national security concerns about potential military or supercomputing applications.
📉 The news triggered a significant stock drop (over 5%) and broader selling pressure across the semiconductor sector, highlighting geopolitical risks impacting the industry.
@bernardodegarcia:
“Futures of stocks fell early Wednesday, as markets evaluated the harsh warning from Nvidia, which pressured global technology. Nvidia shares are currently falling a bit more than 5%, at least a couple of minutes ago, 6.5%, not bad, after the chip giant said it will post a quarterly charge of $5.5 billion related to the export of its H20 graphic processing units to China and other nations. The company stated in a filing that the U.S. government told Nvidia—I was listening to it today on Bloomberg, and the lady talking about Nvidia only referred to it as Nvidia, Nvidia, Nvidia, it stuck with me foolishly—that it would need a license to ship chips from the United States to China. Other chip manufacturers followed Nvidia downward. The U.S. government informed Nvidia on Monday that the H20 would require a license for export to China indefinitely. The new rules address Washington’s concern that the covered products could be used in, or diverted to, a supercomputer in China,” the company declared in a statement. Nvidia warned it will report approximately $5.5 billion in write-downs during the current quarter linked to inventory and commitments for this chip. Its shares fell more than 5% in early trading, triggering widespread selling in semiconductor companies from the United States to Japan.”
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