Nvidia is in a difficult position.

Nvidia says it could lose billions of dollars in fees and revenue as the U.S. government increases barriers to the export of advanced AI chips.

Nvidia is facing difficulties due to new policies introduced by the US government. Photo: Bloomberg.

According to Reuters , Nvidia failed to warn some of its major customers in advance about new US export regulations. These regulations require the semiconductor manufacturer's partners to obtain licenses to sell artificial intelligence chips to China.

In response on April 15, an Nvidia representative revealed that US officials had informed the company on April 9 that the H20 chip required an export license to be sold to China. The following day, the company stated that it always complies with regulations.

The move to restrict AI chip exports marks Washington's latest effort to limit China's access to advanced semiconductors. The U.S. is now making plans to maintain its position in this crucial sector.

Meanwhile, major Chinese cloud computing companies are still expecting shipments of H20 chips by the end of the year, but have not received any official notification from Nvidia regarding export restrictions.

"The U.S. government directs domestic businesses on what they can sell and where, and we strictly adhere to government directives," Nvidia said.

Export controls are threatening Nvidia's business in China, one of the company's largest markets. The semiconductor manufacturer projected $18 billion in H2O orders since the beginning of the year. In China alone, Nvidia generated $17 billion in revenue in fiscal year 2024, equivalent to 13% of the company's total sales.

Nvidia shares fell 6% in trading on April 15 after the company announced it would incur up to $5.5 billion in fees in the first quarter. These fees relate to inventory, purchase commitments, and stockpiling related to H2O products.

Currently, Nvidia has not announced its future plans because the licensing requirement imposed by the US government is indefinite.

Source: https://znews.vn/nvidia-roi-vao-the-kho-vi-chinh-sach-moi-cua-my-post1546607.html