Nvidia's Significant Sales Loss Due to US Export Caps

In a recent SEC filing, Nvidia Corporation revealed a staggering $5.5 billion sales loss projection. This comes as a direct consequence of the United States' stringent restrictions on exporting AI-based chips to China.

The Root of the Restrictions

The US government's decision to limit the sale of high-end chips, including the H20, to China is at the heart of this issue. Officials argue that such technology could potentially power supercomputers within China, posing a national security risk.

Industry Reactions and Market Impact

Major technology firms have expressed concerns over the escalating trade tensions between the US and China, fearing broader implications for the tech sector. Reflecting investor apprehension, Nvidia's shares experienced a 6.33% decline in after-hours trading.