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Nvidia takes $5.5 billion hit as Trump tightens export restrictions in China trade war

Nvidia is caught in the middle of an escalating trade war between the world’s two largest economies.

Nvidia on Tuesday said it will take a $5.5 billion financial hit after Washington placed fresh restrictions on the export of its H20 artificial intelligence chips to China, in the latest escalation of a growing battle for AI dominance. While Chinese tech heavy weight Huawei and AI chipmaker Cambroon have developed alternatives to H20s, those China-made chips generally lag in performance, particularly in software maturity, according to Brady Wang, associate director of Counterpoint Research, a market analysis firm. Ned Finkle, Nvidia’s vice president of government affairs, wrote in a company blog post that the adoption of AI around the world fuels growth and opportunity for industries at home and abroad.

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