Nvidia Faces Potential Losses Due to H20 Chip Export Restrictions

Nvidia has announced that the U.S. government will impose export restrictions on its H20 chip, impacting future shipments to certain countries. This requirement comes in response to existing export controls and is expected to remain in effect indefinitely. 💰 As a result of these limitations, Nvidia anticipates incurring approximately $5.5 billion in losses during this quarter due to inventory write-offs, purchase commitments, and associated reserves. Consequently, the company’s stock price experienced a decline of about 5% after market hours.