- NVIDIA predicts $ 5.5 billion in costs related to H20 export for China and other nations
- The H20 chips were already destined to be optimized for the Chinese market
- The company’s shares are low, market capitalization is maintained below $ 3 billion
Nvidia faces a huge quarterly position of $ 5.5 billion due to the new US export restrictions. Uu. In their H20 AI chips destined for China and other destinations, and the company’s actions fall after revelation.
As of April 9, the United States government ordered a license for NVIDIA to export H20 chips to certain countries, without a completion date, marking an expensive change for the chips manufacturer.
The affected nations are China (including the countries of Hong Kong and Macao) and D5: the United Kingdom, South Korea, Estonia, New Zealand and Israel.
“The results of the first quarter are expected to include up to approximately $ 5.5 billion associated with H20 products for inventory, purchase commitments and related reserves,” Nvidia said in a presentation of the SEC.
The technology giant pointed out the government’s mandatory license “addresses the risk that the covered products can be used or divert CNBC).
H20 chips are less advanced versions of NVIDIA H100/H200 chips, using the 2022 hopper architecture, specifically designed to meet US export restrictions now with a date for the Chinese market. In other regions, the company is now changing its approach to Next Generaiton Blackwell chips.
In addition, Nvidia leaders have talked about the effects of the current commercial war.
“While it is undercover with the appearance of a measure of ‘anti-china’, these rules would do nothing to improve the security of the United States,” said Vice President of Government Affairs Ned Finkle during the last days of Biden in office, before Trump’s tariffs came into force.
Nvidia’s shares are now at $ 112.20, below a maximum of a year of $ 153.13. After spending two short periods of time as the most valuable company in the world, the Nvidia market capitalization of $ 2,737 billion now places it in third position behind Microsoft, with Apple in the first place and the only current company of $ 3 billion (almost).
