The CEO of Nvidia, Jensen Huang, offers the opening speech during the Nvidia GTC 2025 at the Sap Center on March 18, 2025 in San José, California.
Justin Sullivan | Getty images
Nvidia Said on Tuesday that will take a quarterly position of around $ 5.5 billion linked to export graphics processing units to China and other destinations. The shares fell 6% in the extended trade.
On April 9, the United States government told NVIDIA that it would require a license to export the chips to China and a handful of other countries, the company said in a presentation.
Disclosure is the strongest signal until the historical growth of NVIDIA could decrease by increasing export restrictions in its chips, which according to the United States government can be used to create supercomputers for military uses.
Duration The administration of President Biden, the exports of chips of the restricted US of the USA in 2022 and then updated the rules the following year to avoid the sale of the most advanced AI processors. The H20 is an AI chip for China that was designed to meet the export restrictions of the United States. It generated approximately $ 12 billion at $ 15 billion in 2024.
The CEO of Nvidia, Jensen Huang, said in the last quarterly gain call of the company in February that China’s income had fallen to half or control levels prior to exporting. Huang warned that competition in China is growing, and for the second consecutive year, Nvidia listed Huawei as a competitor in its annual presentation.
China is the fourth largest region in NVIDIA for sales, after the United States, Singapore and Taiwan, according to the annual NVIDIA report. 53% of their sales are used for American companies in their fiscal year that ended in January.
NVIDIA H20 chip is comparable to H100 and H200 AI chips used in the USA. And other countries, but has slower interconnection speeds and bandwidth. It is based on an earlier generation of architecture of the so -called Hopper introduced in 2022. Nvidia is now focusing on selling its current generation of AI chips, called Blackwell.
Deepseek, the Chinese company whose competitive AI Model R1 presented at the beginning of this year the dump markets, used H20 Chips in its investigation.
In addition to existing Chinese export controls, NVIDIA also faces new restrictions on what it can export from next month, under the “rules of dissemination of AI” that the Biden administration proposes for the first time.
Nvidia has argued that additional controls in their chips would extend a rigid competition and enhancedly eroded the competitiveness of the United States in technology. The company said previously that it transferred some of its operations, including tests and distribution, outside China after the export controls of 2022.
At the company’s conference last month, when asked about Chinese export controls, the CEO of Nvidia, Jensen Huang, said the company works to comply with the law, but also pointed out that approximately half of the world’s researchers are the laboratory.
In the SEC fillet on Tuesday, Nvidia says that the United States government said Monday that the license requirement for H20 chips would be in force “for the indefinite future.”
NVIDIA reports fiscal results of the first quarter on May 28.
Look: Nvidia says that USA requires license to export H20 products to China
