Nvidia is expecting a $ 5.5 billion blow

Microchip manufacturer NVIDIA has said it will be raised by $ 5.5 billion ($ 4.2 billion in British pounds) expenses after the US government has tightened the export rules to China.

The chip production giant, which underlies the boom of artificial intelligence (AI), will require licenses to export its H20 AI Chip to China, which is one of its most popular.

The rules come against the backdrop of an escalating trade war between the US and China, with the two countries introducing steep commercial tariffs on top of each other, covering different goods.

NVIDIA shares were submerged almost 6% in trade after hours.

Nvidia announced on Tuesday that the US government said last week that the H20 chip requires a sales permit to China, including Hong Kong.

The technical giant said the federal employees advised them that the license requirement “would be in force for the indefinite future”.

“(The Government) pointed out that the license requirement addresses the risk that the covered products can be used or diverted to a supercomputer in China,” Nvidia said.

The company refused to comment further when it contacted the BBC.

Mark Einstein of Counterpoint Research Consultancy said the $ 5.5 billion hit, calculated by NVIDIA, is in line with his estimates.

“Although this is certainly a lot of money, this is something that Nvidia can bear,” he said.

“But as we have seen in the last few days and weeks, this can largely be a tactics for negotiation. I would not be surprised to see some exceptions or changes made in the tariff policy in the near future, given that this not only affects NVIDIA, but also the entire ecosystem of the US semiconducts,” added einstein.

The chips remain battlefield in the US and China Competition for technological supremacyAnd US President Donald Trump now wants to load a very complex and delicate production process that takes other regions for decades to improve.

Nvidia’s AI chips were a key focus on US export controls. Founded in 1993, it was originally known for making the type of computer chips that process graphics, especially for computer games.

Long before the AI ​​revolution, she began to add functions to her chips, which says the help of machine learning. It is now regarded as a key company to watch to see how quickly the technology powered by AI throughout the business world is distributed.

The company’s value took a blow in January When it was reported that a rivalry Chinese app AI, Deepseek, was built on part of the price of other chatbots.

At that time, the United States was thought to have been caught by its opponent’s technological achievement.

Nvidia said fees for $ 5.5 billion will be linked to H20 inventory products, purchase commitments and reserves.

Rui MA, founder of the Podgist Tech Buzz China, said it expects the supply chains for semiconductor American and China AI to be “completely separated” if the restrictions remain in place.

She added, “It doesn’t make sense to depend on American chips,” especially since there is over -offer in China.