Nvidia Chip Export Restrictions: CEO Warns Legislation Could Impact NVDA Stock

NVIDIA faces mounting challenges as U.S. export restrictions tighten, with CEO Jensen Huang highlighting potential losses in the critical Chinese market. A $5.5 billion quarterly charge—stemming from blocked H20 chip shipments to China—has already pressured the company’s stock.

Legislative risks escalated this week as Representative Bill Foster introduced a bipartisan bill targeting AI chip smuggling. The proposed measures would enforce post-sale location tracking of advanced semiconductors and prevent unauthorized activation—a direct response to circumvention attempts following Trump-era export controls.

Huang’s defense of Chinese market access contrasts sharply with Washington’s hardening stance. The new tracking legislation could further complicate NVIDIA’s ability to navigate geopolitical tensions while maintaining its technological edge.