Nvidia expects to incur approximately $5.5 billion in charges as a result of the Trump administration's export control measures targeting its H20 chips, according to a recent SEC filing. This export rule mandates Nvidia to obtain licenses for sending these chips to China, necessitating adjustments in inventory and creating potential losses in future sales. Consequently, the anticipated charges will affect Nvidiaâs first-quarter earnings. The situation has led to a more than 5% decline in Nvidiaâs stock following the announcement, reflecting investor concerns over the implications of the trade regulations amid an ongoing AI arms race.
Nvidia has indicated that it expects up to $5.5 billion in charges due to a new export rule that indefinitely targets its H20 chips, affecting first-quarter earnings.
The export rule, instituted under the Trump administration, requires Nvidia to obtain a license for H20 chips to China, exacerbating issues with inventory and sales.
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