NVIDIA expects $ 5.5 billion as the United States tightens the rules for exporting chips on China

Microchip Maker Nvidia said it would reach 5.5 billion dollars (4.2 billion pounds) at costs after the US government tightened export rules to China.

The chips manufacturing giant, which was at the heart of the mutation of artificial intelligence (AI), will require licenses for the export of the H20 Ai chip to China, which was one of the most popular.

The rules come amid an escalating trade war between the United States and China, as both countries presented a highly declining trade tariff on each other covering various commodities.

NVIDIA shares decreased approximately 6 % in trading after hours.

NVIDIA announced on Tuesday that the United States government told it last week that the H20 chip requires selling it to China, including Hong Kong.

The technology giant said that federal officials have advised them for licensing requirements “will be valid for the unspecified future.”

“The government indicated that licensing requirements deal with the risk of using covered products in or converting them into a super computer in China,” Nafidia said.

The company refused to comment more when calling the BBC.

Mark Einstein of anti -meal research consultations said that the intention of $ 5.5 billion estimated by NVIDIA was in line with his estimates.

“While this is definitely a lot of money, this is something that Nafidia can bear,” he said.

“But as we have seen in the past few days and weeks, this may be largely negotiating. I will not be surprised to see some of the exemptions or changes made on the policy of customs tariffs in the near future, given that this not only affects NVIDIA but a system of entire semiconductors.”

Chips remain a battle in the United States of Chinese race to excel technologyAnd US President Donald Trump now wants to overcome a very complex and sensitive manufacturing process that took place for perfection.

Nvidia’s AI chips served as the main axis of US export controls. It was founded in 1993, and was originally known for making the type of computer chips that process graphics, especially for computer games.

A long time before the artificial intelligence revolution, it began to add features to its chips that it says helps in machine learning. A basic company is now viewed to watch the prevalence of the acting technology that works in the business world.

The company’s value achieved great success in January When it was reported that the opposing Chinese AI application, Deepseek, was built on a small portion of other Chatbots cost.

At that time, the United States has been considered frustrated by the completion of their technological rival.

NVIDIA said its $ 5.5 billion fees will be linked to H20 products for its stocks, purchase obligations and relevant reserves.

Roy Ma, the founder of the BUZZ China Technology, said she expects that the chains of the American and China supplies will be “completely disintegrated” if the restrictions remain in place.

“It is not logical that any Chinese customer depends on the US chips,” especially because there is an increase in databases in China.