Chip restrictions may cause NVIDIA to lose tens of billions of dollars in revenue in China.

Chip Controls May Cause Nvidia to Lose Billions of Dollars in Revenue in China

Nvidia announced on Tuesday that due to US export controls on the H20 artificial intelligence chip, the company will record a loss of $5.5 billion. However, industry insiders pointed out that the actual impact of this export control on Nvidia's revenue could exceed $10 billion. According to two insiders, Nvidia originally thought its H20 chip would receive an exemption from the US government. After Nvidia executives met with Trump at Mar-a-Lago earlier this month, they felt they would not be restricted by more stringent export control measures. Moreover, Nvidia's plan to invest $500 billion in the US also impressed Trump. This prompted Nvidia to tell Chinese customers such as Alibaba, ByteDance, and Tencent that H20 orders would not be affected. In contrast, Intel told Chinese customers last week that they would need to apply for a license to sell some advanced AI processors.

—— Financial Times, Reuters

via Fengxiangqi Reference Express - Telegram Channel