Thread: Dabblers dread it, but Nvidia is due a 5.5 billion hit.

Nvidia has said it expects a $5.5bn (£4.1bn) hit after Donald Trump’s administration barred the chip designer from selling crucial artificial intelligence chips in China, sending shares in one of the US’s most valuable companies plunging in after-hours trading.

The company said in an official filing late on Tuesday that its H20 AI chip, which was designed specifically for the Chinese market, to comply with export controls, would now require a special licence to sell there for the “indefinite future”.


The US government, which is battling China in the race for AI supremacy, told Nvidia the new rules were designed to address the risk that its products might be “used in, or diverted to, a supercomputer in China”.


The chip designer now expects to report $5.5bn in charges in its financial quarter that ends on 27 April, because of stocks of H20 chips and sales commitments.


Nvidia, whose chips have helped drive huge developments in AI technology in recent years, has produced extraordinary returns for its investors. Its shares have risen by more than 1,400% since 2020, making it one of the few businesses in the US worth trillions of dollars.


However, the news on Tuesday sent Nvidia shares down about 6% in after-hours trading in the US, which could wipe off billions from its market value at the opening bell on Wednesday.


A chipmaker sell-off has already started in Asia, with South Korean semiconductor businesses such as Samsung Electronics and SK Hynix falling by as much as 3% overnight. In Europe, shares in ASML dropped 5% in early trading after its chief executive, Christophe Fouquet, said: “The recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while.” The Dutch company, which produces lithography machines used to make chips, also reported that orders in its first financial quarter were €3.94bn (£3.37bn), about €1bn less than investors had expected.


Shares in the US competitor Advanced Micro Devices also fell 7% in after-hours trading.


While so far the chip industry has been exempt from the 10% tariffs that started on 5 April, Trump said he would announce a levy on imported semiconductors over this week, adding that there could be some flexibility for certain companies in the sector.

Nvidia expects to take $5.5bn hit as US tightens AI chip export rules to China | Nvidia | The Guardian

Don't panic Mr. Mainwaring.

On Wednesday, Mizuho Securities reiterated its Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) with a steady price target of $168.00. The reaffirmation comes in the wake of NVIDIA’s recent 8-K filing, which disclosed new export restrictions imposed by the U.S. Government. These restrictions affect NVIDIA’s shipments of its H20 series products to China, including Hong Kong, and to other countries that are subject to U.S. arms embargoes. With a market capitalization of $2.74 trillion and a perfect Piotroski Score of 9 according to InvestingPro, NVIDIA remains a dominant force in the semiconductor industry despite regulatory challenges.
NVIDIA has indicated that approximately $5.5 billion in revenue may be impacted by the new regulations. This figure represents a portion of the estimated $16 billion in H20 orders, suggesting that over $10 billion worth of products could have already been shipped for the calendar year 2025 estimates. Despite the potential setback from the export restrictions, Mizuho analysts believe that NVIDIA’s near-term prospects appear positive, particularly with the shipment of the GB200 series and the expansion of testing capacity for more complex GPU racks.

It's ok I only use their skin cream anyway.

I think sybille was trying to be clever, but he clearly didn't notice I cashed in when it hit $150 and the loss on the amount I kept for fun is probably around his monthly expenditure, which is obviously not a lot.

Originally Posted by harrybarracuda

and the loss on the amount I kept for fun is probably around his monthly expenditure

Yeah, sure.

Yes, who could possibly have predicted that response.

Anyone who read about Biden threatening it a year ago.

Good time to buy!

Buy some NVIDEA shares quick before Trump decides on a 90 day pause or does a complete U-turn - or a deal!

Originally Posted by cyrille

Yes, who could possibly have predicted that response.

Originally Posted by harrybarracuda

Anyone who read about Biden threatening it a year ago.

Cy was talking about your response, you demented twerp.

Originally Posted by Neverna

Good time to buy!

Buy some NVIDEA shares quick before Trump decides on a 90 day pause or does a complete U-turn - or a deal!

He's struggling to keep up.

He's already talking about lifting tariffs on cars because someone told the dim fucker how much of American ones come from China.

Speaking about struggling to keep up...

too late now - but on the plus side , any country without china tariffs will get cheaper tech widgets

https://www.youtube.com/results?sear...a+chip+5nm+fab

Originally Posted by DrWilly

Cy was talking about your response, you demented twerp.

Originally Posted by baldrick

too late now - but on the plus side , any country without china tariffs will get cheaper tech widgets

https://www.youtube.com/results?sear...a+chip+5nm+fab

The nVidia CEO has been in Bejiing. No doubt that will infuriate the orange turd, but who cares?

If it ends up that the orange turd has helped Chinkystan at America's expense, it will be another example of what a witless fuck he is.

Originally Posted by armstrong

It's ok I only use their skin cream anyway.

I was pretending I had read Nivea, the popular skin care brand and not Nvidia, the computer tech company by the way.

Just in case no one got it.

Originally Posted by armstrong

I was pretending I had read Nivea

you're ass smooth as a buttered buffalo

Has Ciz been on the Pai Shrooomsss again?

Getting on for 30 years since I was there.

It was nice back then.

Whatever on earth you are dribbling on about is of no concern, of course.

Agreed I went to Pai 20 years ago , lovely but a bit like religion, tap dancing and prostate scan once was enough and I also read it has become overcrowded.

Originally Posted by armstrong

I was pretending I had read Nivea, the popular skin care brand and not Nvidia, the computer tech company by the way.

Just in case no one got it.

It's funny because they sound the same a bit.

Originally Posted by armstrong

It's funny because they sound the same a bit.

Only to a knuckle dragging slobberhead like you.

Originally Posted by bsnub

Only to a knuckle dragging slobberhead like you.

That's the most American insult I ever heard. OH NOE THE RESNECK THAT LIVES IN A BASEMENT CALLED ME A SLOBBERHEAD HOW WILL I EVER RECOVER.