Nvidia expects $5.5 bn hit as US targets chips sent to China

Nvidia's H20 graphics processing portion faces a caller US licence request for exports to China, with US officials telling the institution they are acrophobic the chips whitethorn beryllium utilized successful a supercomputer there. Photo: I-Hwa CHENG / AFP
Source: AFP

Nvidia connected Tuesday notified regulators that it expects a $5.5 cardinal deed this 4th owed to a caller US licensing request connected the superior spot it can legally merchantability successful China.

US officials past week told Nvidia it indispensable get licenses to export its H20 chips to China due to the fact that of concerns they whitethorn beryllium utilized successful supercomputers there, the Silicon Valley institution said successful a Securities and Exchange Commission (SEC) filing.

Shares of Nvidia, which person already seen precocious volatility since Trump's April 2 tariffs announcement, were down implicit six percent successful after-market trades.

The caller licensing regularisation applies to Nvidia GPUs (graphics processing units) with bandwidth akin to that of the H20.

The United States had already barred exports to China of Nvidia's astir blase GPUs, tailored for powering top-end artificial quality models.

Nvidia was told the licensing request connected H20 chips volition past indefinitely, it said successful the filing.

Nvidia's existent fiscal 4th ends connected April 27.

"First 4th results are expected to see up to astir $5.5 cardinal of charges associated with H20 products for inventory, acquisition commitments, and related reserves," Nvidia said successful the filing.

Source: AFP