key takeaways
- NVIDIA said it is set to charge a first-spectacle fee of $ 5.5 billion after American limited exports of its artificial intelligence (AI) chips to China.
- In a growing trade war between Washington and Beijing, the latest Salvo on Wednesday sent the firm’s shares in premarket trading.
- China’s Ministry of Commerce also imposed export control over the sale of AMD’s AI chips.
NVIDIA (NVDA) said it expects to charge a fee of $ 5.5 billion in its first quarter results of its financial 2026 after exports of its Artificial Intelligence (AI) Chips to China.
In a growing trade war between Washington and Beijing, the latest Salvo on Wednesday sent the firm’s shares about 6% of the firm shares in premarket trading.
The company said in a regulatory filing late Tuesday night that it was informed by the US government on 9 April that China would be required to be an export license for an “uncertain future” to sell its H20 chips. NVIDIA said that the objective of the license requirement is to address the risk that the chip “will be used in a supercomputer in China, or diverted.” The chip is less powerful than its new ones and is ready to complete the existing export boundaries for the Chinese market.
NVIDIA Q1 results, which are required on May 28, are ready to include a fee of $ 5.5 billion “inventory, procurement commitments and associated with H20 products for related reserves,” said this. As Morningstar Research“China has shrunk to about 10% of Nvidia’s revenue from 20%, and now we hope it will go close to zero.”
the new York Times A spokesman for the US Department of Commerce said, “The administration was issuing new export licensing requirements for NVIDIA H20; Advanced micro equipment, Mi308; and a chip from their counterparts.” AMD (AMD) shares were also about 6% below in premarket trading.
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