Trump Targets Nvidia’s H20 Export! Nvidia Shares Drop 7% in After-Hours Trading, Nvidia-Related Stocks Tumble

Mitrade
Trending Articles
coverImg
Source: DepositPhotos

Amid escalating U.S.-China trade tensions, the Trump administration has targeted Nvidia’s H20 chips, specifically designed for the Chinese market—by imposing new export licensing requirements., The move marks a further intensification of U.S. export controls on advanced technologies bound for China.


In a regulatory filing on Tuesday, April 15, Nvidia (NVDA.US), the leading supplier of AI chips globally, disclosed that the U.S. government now mandates an export license for any future export shipments of its H20 chip to China. This license requirement is effective immediately and applies indefinitely. 


As a result, Nvidia announced a $5.5 billion inventory write-down and the cancellation of  H20-related sales for the current quarter (Q1 of fiscal year 2026).


According to the filing,  U.S. officials imposed the licensing mandate to mitigate the risk of Nvidia’s chips being used or diverted by Chinese supercomputers—an area of strategic concern amid technological competition between the two nations.


The news triggered a sharp market reaction.  Nvidia shares fell 6% in after-hours trading. The ripple effect extended to its Taiwanese supply chain partnersThe ripple effect extended to its Taiwanese supply chain partners o the morning of April 16: Taiwan Semiconductor Manufacturing Company (TSMC, 2330.TW) dropped 1.60%, Hon Hai Precision Industry (Foxconn, 2317.TW) declined 1.43%, and MediaTek, Quanta, and Wistron also fell.


 The H20 chip,  although feature-restricted version of Nvidia’s flagship processors, remains powerful enough to support the development and deployment of advanced AI applications. It was specifically tailored to comply with prior U.S. restrictions while still serving the Chinese market.  


Bloomberg reported that, as China is viewed as the United States’ principal competitor in artificial intelligence, there is heightened sensitivity around the national security implications of its exporting AI technology. The H20 chip has thus become a focal point in Trump’s increasingly aggressive trade policy toward China.


Commenting on Nvidia’s $5.5 billion write-down, analysts at Counterpoint Research noted that the figure was within expectations and, while substantial, is a loss Nvidia can likely absorb without major disruptions.


The consulting firm suggested that the move may be part of a broader negotiation strategy. Given the widespread impact on the  U.S. semiconductor sector, they would not be surprised to see future exemptions or policy.


However, analysts cited by Bloomberg warned that Nvidia’s lead would result in a shortfall of 14 billion to 18 billion for the fiscal year. Nvidia’s data center business in China may return to levels seen in early 2024, before the expansion of  H20 production.

Read more

  • 4 US Economic Events with Crypto Implications This Week
  • 4 US Economic Events with Crypto Implications This Week
  • Fed’s October Rate Cut: Easing Cycle Continues, Gold Likely to Keep Rising
  • 4 US Economic Events with Crypto Implications This Week
  • 4 US Economic Events with Crypto Implications This Week
  • 4 US Economic Events with Crypto Implications This Week
  • * The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

    goTop
    quote
    Related Articles
    placeholder
    Dow Jones futures gain on improved market sentiment, awaits earnings from tech giantsDow Jones futures rise 0.65% to trade near 47,700 during European hours, ahead of the opening of the United States (US) regular session on Monday.
    Author  FXStreet
    21 hours ago
    Dow Jones futures rise 0.65% to trade near 47,700 during European hours, ahead of the opening of the United States (US) regular session on Monday.
    placeholder
    Trump team explores direct ownership in quantum computing firmsThe Trump administration is negotiating to take equity stakes in quantum computing firms in exchange for federal funding.
    Author  Cryptopolitan
    Oct 23, Thu
    The Trump administration is negotiating to take equity stakes in quantum computing firms in exchange for federal funding.
    placeholder
    Tesla Q3 Earnings Preview: Record Deliveries “Burn Out,” Growth Path Filled With UncertaintyTesla’s stock has rebounded over 85% in the past six months — the strongest recovery among the Magnificent Seven.
    Author  TradingKey
    Oct 22, Wed
    Tesla’s stock has rebounded over 85% in the past six months — the strongest recovery among the Magnificent Seven.
    placeholder
    BitMine and Strategy Capitalize on Market Weakness to Expand Crypto PortfoliosAfter the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
    Author  Beincrypto
    Oct 21, Tue
    After the October crash shook global markets, crypto assets continued their volatile run, with Bitcoin (BTC) and Ethereum (ETH) still below their pre-crash levels.
    placeholder
    Japan stocks surge on historic appointment of Sanae Takaichi as first female PMSanae Takaichi became Japan’s first female Prime Minister after winning 237 votes in the Lower House.
    Author  Cryptopolitan
    Oct 21, Tue
    Sanae Takaichi became Japan’s first female Prime Minister after winning 237 votes in the Lower House.
    Live Quotes
    Name / SymbolChart% Change / Price
    NVDA
    NVDA
    0.00%0.00

    Stocks Related Articles

    • Amazon Stock Analysis: How to Invest in Amazon Stock?
    • Best 15 ASX Lithium Stocks To Watch in 2024-2025 | Industry Overview & Stock List
    • GOOG vs GOOGL: What's the Difference? Which One Should You Buy?
    • What Is A Stock Dividend? Top 20 High-Dividend Stocks List For 2024
    • How To Buy Nvidia Stocks (NASDAQ: NVDA)? Are Nvidia Stocks Worth Investing In During 2024?
    • How to Invest in Stock Market for Beginners

    Click to view more