Nvidia (NASDAQ: NVDA) is caught in the middle of the US-China trade war after Washington has imposed new export restrictions on the tech giant.
In the company’s SEC filing, it indicated that the US government informed Nvidia that a license will now be required to export its H20 integrated circuits to China, including Hong Kong and Macau, as well as to countries classified under D:5—those considered to pose significant national security risks. The new rule also applies to companies headquartered or ultimately owned in those regions.
US authorities cited concerns that Nvidia’s advanced chips “may be used in, or diverted to, a supercomputer in China,” further aligning with Washington’s broader goal of curbing Beijing’s access to cutting-edge AI and defense-enabling technologies.
The US government confirmed to Nvidia that the export license requirement would remain in effect “for the indefinite future.”
The impact on Nvidia is immediate and significant. The company expects to incur up to $5.5 billion in charges related to the H20 product line in its first fiscal quarter of 2026, which ends April 27. These charges stem from inventory write-downs, purchase commitments, and related reserves.
Shares of Nvidia also slid approximately 5% in after-hours trading following the announcement.
This move comes as part of a broader geopolitical maneuver by the US to isolate China from global tech supply chains. According to The Wall Street Journal, American officials are now lobbying more than 70 allied nations to prevent China from circumventing restrictions by rerouting goods through third countries.
Nvidia has found itself repeatedly in the crosshairs of US export policy. Previously, the Biden administration restricted the export of the company’s A100 and H100 chips to China, prompting Nvidia to develop custom versions like the H20 in an attempt to comply with US rules while retaining access to the Chinese market. The latest restrictions effectively shut that door.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
