- NVDA shares lost up to 10% on Wednesday, sinking about $ 100.
- The company said Tuesday night that the Trump administration would be restricting its export of H20 AI chips to China.
- Nvidia says it will take a charge of 5.5 billion dollars due to the change of rule.
- Nvidia built the H20 chip to comply with the export rules of the Biden era.
NVIDIA (NVDA) The session on Wednesday began on the bad news related to its H20 chip, and the mass sale has only won energy as the session progressed. Approximately one hour before closing, NVDA shares gave more than 10% to quote about $ 100.45.
The Nasdaq has collapsed in unison, quoting down 4.2% to 16,115. The Dow Jones industrial average, which also includes NVDA, lost 2.1%, while the S&P 500 is around 3%.
The market was not influenced by an US retail sales data quite positive, with a growth of 1.4% monthly in March, which was above the consensus of 1.3%.
News about Nvidia’s actions
Nvidia announced Tuesday night that the Trump administration issued a notice on April 9 that its H20 chips would now require an export license. This news had been rumored at the beginning of the year, but some reports last week suggested that the White House was also leaving that process along with its exemption from tariffs for chips and pharmaceutical products.
The H20 chip was originally designed to provide Chinese companies with a semiconductor of AI with less optimization than the H100 chip manufactured by NVIDIA, in order to avoid the US dissemination rule of the US that prohibited the export of H100 to China. Started by the Biden Administration, the dissemination rule of the limited what China and certain other countries could buy from US companies.
Nvidia states that it will take a charge of 5.5 billion dollars due to the high inventories of the H20 chip that are unlikely to be sold. Technically, NVIDIA could request to send the H20 chip to certain Chinese corporations, but the general perception is that the Trump administration will prohibit the export of this chip to all Chinese entities.
At the beginning of the year, Bytedonce, which has Tiktok, and Tencent ordered more than 16,000 million dollars in H20 Chips in an attempt to advance to the next export prohibition.
In a press release, Nvidia said: “The [gobierno de EE.UU.] He indicated that the license requirement addresses the risk that covered products can be used in, or deviated to, a supercomputer in China. On April 14, 2025, [ellos] They informed the company that the license requirement will be in force for an indefinite future. “
US President Donald Trump announced Tuesday that Nvidia had agreed to invest 500,000 million dollars in the construction of supercomputers in the United States, which is similar to the Apple Plan (AAPL) to invest in manufacturing and other capabilities over the next four years.
NVIDIA actions forecast
Nvidia shares have lost their position above the support at 105 $. This means that the mega capitalization could be aimed at another confrontation with the price level of $ 92 that remained during the collapse of August 5, 2024. Although, the operators will notice that NVDA shares briefly fell below 87 $ April 7.
Due to the Patron of Cruz de la Muerte, in which the Simple Mobile (SMA) of 50 days is below the 200 -day SMA, Nvidia is simply in a downward cycle. With the current approach of the administration in tariffs and its commercial war with China, more and more operators will take the track and start selling this market in short.
Daily NVDA Shares Graphics
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
