Nvidia Faces Significant Sales Loss

In a startling development, Nvidia, a titan in the artificial intelligence sector, witnessed a sharp decline of over 7% in premarket trading this Wednesday. This downturn followed the revelation that the company anticipates a staggering $5.5 billion loss, attributed to the latest US tariff restrictions on high-end chip exports to China.

Behind the Numbers

A recent filing with the US Securities and Exchange Commission (SEC) shed light on the situation, indicating that the projected loss stems from Washington's decision to limit the sale of advanced US chips, including the H20 model, to China. This move has sent ripples through the market, affecting Nvidia's stock value significantly.

At precisely 4:10 am ET, Nvidia's shares were recorded at a 7.08% drop, landing at $112.20, marking a concerning start to the day for investors and industry watchers alike.