Nvidia stock declines as US restricts AI chip exports to China
Nvidia has announced that new US restrictions on exporting AI chips to China will significantly impact the company’s costs. Nvidia anticipates bearing around $5.5 billion in costs related to its AI chip inventory. The US government has stated that exports of H20 integrated circuits and similar chips to China, Hong Kong, and Macau require a license. These restrictions led to a decrease in Nvidia and AMD stocks in after-hours trading. Nvidia stocks dropped by 6% and AMD stocks by over 7%. This news highlights that even major tech companies are not immune to the impacts of trade wars and US tariffs.
