• Like
  • Comment
  • Favorite

Nvidia Shares Retreat on $5.5 Bln Charge from New Export Restrictions

Dow Jones04-16

 

By Dean Seal

 

Shares of Nvidia slid after the company said it would record a $5.5 billion charge on its quarterly earnings from a new license requirement for exporting certain processors to China.

The stock was down 5.8% at $105.67 in premarket trading on Wednesday. Shares were changing hands at around $88.19 this time a year ago, but had fallen 16% year-to-date when the market closed Tuesday.

The graphics-chip maker said Tuesday evening that it had been informed by the U.S. that it now needs a license for exporting H20 processors to China and other countries. The government said the new requirement would be in place "indefinitely," according to a securities filing.

As a result, first-quarter results will include a $5.5 billion negative effect "associated with H20 products for inventory, purchase commitments and related reserves," the filing said.

The H20 chips had been designed to enable sales of AI processors to China that were allowed under U.S. export controls. The chips have less processing power than the latest cutting-edge Nvidia processors.

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

April 16, 2025 06:30 ET (10:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

empty
No comments yet
 
 
 
 

Most Discussed

 
 
 
 
 

7x24