The U.S. government's decision in April 2025 to impose stricter export controls on advanced semiconductors has delivered a significant blow to Nvidia, compelling the company to obtain licenses for sales of its H20 AI chips to China—one of its largest and most strategically important markets.
The H20 chip, previously engineered to comply with earlier U.S. restrictions while maximizing performance, was Nvidia’s most advanced offering available to Chinese customers. However, under the new rules, even these tailored products require export licenses, severely limiting Nvidia’s ability to operate freely in China.
Following the announcement, Nvidia projected approximately $5.5 billion in charges for its fiscal Q1 2026, prompting a stock drop of up to 7% during subsequent trading sessions. The financial impact underscores how vulnerable the company is to geopolitical shifts, particularly as Washington seeks to curb China’s access to cutting-edge AI technology.
In a bid to retain some market presence, Nvidia is planning to launch a downgraded version of the H20 chip in July 2025, according to Reuters. The new variant will feature significantly reduced memory and modified specifications to comply with the updated U.S. export framework. Despite these efforts, the company’s leadership remains starkly realistic about the toll.
During a keynote at the Computex trade fair in Taipei, Nvidia CEO Jensen Huang called the restrictions “extremely costly” and “painfully significant,” revealing that the company has already incurred an estimated $15 billion in lost sales due to the ongoing policy shifts.
The evolving situation reflects the growing strategic tension between maintaining access to China’s $17 billion AI chip market and adhering to U.S. national security directives aimed at limiting Beijing’s technological advancement in artificial intelligence. For Nvidia, and other U.S.-based semiconductor firms, navigating this geopolitical minefield has become increasingly complex—balancing profit potential with regulatory compliance in a time of intensifying U.S.-China tech rivalry.
New Zealand’s parliament on Thursday passed legislation ending a ban on offshore oil and gas exploration, reversing a flagship policy of former Prim...
The European Commission has said it does not view imposing network fees on major technology firms as a practical solution to the ongoing debate over f...
Iranian President Masoud Pezeshkian has issued a stark warning over unsustainable water usage, cautioning that the capital Tehran could face severe sh...
Kazakhstan Temir Zholy, the country's national railway company, has announced plans to construct more than 1,700 kilometers of new rail lines and upgr...
China and the United States have agreed to extend tariff pauses and deepen economic consultations following two days of trade talks in Stockholm, Chin...
Nvidia has received approval from the U.S. government to sell its advanced H20 AI chips to China, CEO Jensen Huang announced.
Nvidia chief executive Jensen Huang will brief reporters in Beijing on Wednesday, 16 July, his second China trip this year, as Washington’s export bans squeeze the graphics-chip maker’s biggest foreign market.
Nvidia CEO Jensen Huang will meet with U.S. President Donald Trump at The White House on Thursday, just before a planned trip to China, according to a source familiar with the matter.
Central Asia’s fastest supercomputer, powered by the high-end NVIDIA H200 graphics processor, has been launched in Kazakhstan at the National Supercomputer Center "Alemcloud."
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
Australian researchers have created a groundbreaking “biological AI” platform that could revolutionise drug discovery by rapidly evolving molecules within mammalian cells.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
'Superman' continued to dominate the summer box office, pulling in another $57.25 million in its second weekend, as theatres welcome a wave of blockbuster competition following a challenging few years for the film industry.
The European Commission has said it does not view imposing network fees on major technology firms as a practical solution to the ongoing debate over funding the expansion of 5G and broadband infrastructure across the bloc.
Germany’s cabinet has approved a draft 2026 budget on Wednesday featuring record investments and a borrowing level nearly three times higher than last year’s, aiming to strengthen infrastructure and defence while efforts to revive growth.
The World Bank has announced that Tajikistan's medium-term outlook remains favourable, with growth projected to moderate to 7% in 2025 and converge toward a growth rate of 4.5% in 2026 and 5% in 2027.
Adidas saw its shares drop 7.5% in early Wednesday trading after second-quarter sales came in below expectations and the company warned of an added €200 million ($231 million) cost burden from new U.S. tariffs in the second half of 2024.
Spotify projected third-quarter profit below market expectations on Tuesday, citing increased tax expenses linked to employee compensation, despite strong demand for its premium subscription services.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment