Why Shares of Nvidia Are Sinking Today

Shares of Nvidia (NASDAQ: NVDA) were trading nearly 7% lower at 10:52 a.m. ET today. In a filing last night, Nvidia disclosed that it would be taking a $5.5 billion charge in its first quarter of fiscal 2026 after the U.S. government informed the company that it will need a license to export certain chips to China and other countries.Nvidia will need the license to sell its less advanced H20 chips in China, including Hong Kong and Macao. The license requirement will be in "effect for the indefinite future" and is intended to prevent China from obtaining tech that could be used to build a supercomputer. Nvidia attributed the $5.5 billion charge to getting H20 products for inventory, purchase commitments, and related reserves.The move builds on actions initially undertaken by the Biden administration to prevent some of Nvidia's most advanced chips from reaching China in order to stymie its artificial intelligence (AI) capabilities. In fact, Nvidia actually built the H20 chip to comply with the export restrictions. CNBC estimates the chips brought in $12 billion to $15 billion in revenue in 2024. However, earlier this year, a Chinese company called DeepSeek used the H20 chips to develop a chatbot similar to OpenAI's ChatGPT, supposedly at a fraction of the cost.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool