Nvidia Faces Significant Sales Loss Due to US Chip Export Restrictions

In a startling development, Nvidia, a global powerhouse in artificial intelligence technology, experienced a sharp decline of over 7% in premarket trading. This downturn follows the company's alarming disclosure of an anticipated $5.5 billion sales loss, attributed to new US tariff restrictions on high-end chip exports to China.

SEC Filing Reveals Depth of Expected Impact

The gravity of the situation was underscored by a recent US Securities and Exchange Commission (SEC) filing. Nvidia's projection is based on the repercussions of Washington's decision to limit the sale of advanced US chips, including the H20 model, to the Chinese market.

Market Reaction: By 4:10 am ET, Nvidia's shares had fallen by 7.08%, landing at $112.20, signaling investor concern over the export constraints.