Nvidia Export Restrictions Drive Investor Focus on Earnings Report

Investors are turning their attention to the impact of export restrictions from the US on Nvidia’s earnings report scheduled for Wednesday. Despite continued strong sales growth in its graphic processing units, the company is facing a significant headwind from these restrictions. The Trump administration recently sent a letter requiring an export license for Nvidia’s H20 chip, a version specifically designed for China to comply with existing US regulations. This move has led to a sizable write-down of $5.5 billion in inventory linked to exporting H20 chips to China and other markets.