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Nvidia Faces $5.5B Write-Down as US Tightens Chip Export Restrictions to China
Nvidia Faces $5.5B Write-Down as US Tightens Chip Export Restrictions to China
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Investors are bracing for Nvidia’s earnings report amid heightened scrutiny over US export restrictions targeting its AI chips. The company disclosed a potential $5.5 billion inventory write-down—the largest in chip industry history—after new bans on H20 processor sales to China. This could erase $15 billion in projected annual revenue from what had been a $12-15 billion market segment in 2024.
The Biden administration’s national security concerns now extend beyond military applications, with the Trump-era Commerce Department demanding export licenses for China-specific chips. Nvidia’s stock dipped 3.5% following the announcement, reflecting market unease about the geopolitical constraints on semiconductor trade.
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