- NVDA stock lost as much as 10% on Wednesday, sinking near $100.
- The company said late Tuesday that the Trump administration would be curbing its export of H20 AI chips to China.
- Nvidia says it will take a $5.5 billion charge due to the rule change.
- Nvidia built the H20 chip in order to comply with Biden-era export rules.
Nvidia (NVDA) began the Wednesday session down on bad news regarding its H20 chip, and the sell-off has only gained energy as the session progressed. About one hour out from the close, NVDA stock gave up more than 10% to trade near $100.45.
The NASDAQ has collapsed in unison, trading down 4.2% to 16,115. The Dow Jones Industrial Average, which also includes NVDA, lost 2.1%, while the S&P 500 is circling a 3% loss.
The market was not swayed by a quite positive US Retail Sales reading of 1.4% growth MoM in March, which was above the consensus for 1.3%.
Nvidia stock news
Nvidia announced late Tuesday that the Trump administration has issued a notice on April 9 that its H20 chips would now require an export license. This news had been rumored earlier in the year, but some reporting last week suggested that the White House was also pausing that process alongside its tariff exemption for chips and pharmaceuticals.
The H20 chip was originally designed to give Chinese companies an AI semiconductor with less optimization than the H100 chip made by Nvidia in order to circumvent the US’ AI Diffusion Rule that banned the H100 from export to China. Begun by the Biden administration, the AI Diffusion Rule limited what AI tech China and certain other countries could buy from US companies.
Nvidia claims that it will take a $5.5 billion charge due to high inventories of the H20 chip that are unlikely to be sold. Technically, Nvidia could request to ship the H20 chip to certain Chinese corporations, but the general perception is that the Trump administration will ban the export of this chip to all Chinese entities.
At the beginning of the year, ByteDance, which owns TikTok, and Tencent ordered more than $16 billion in H20 chips in an attempt to front-run the coming export ban.
In a press release, Nvidia said, “The [US government] indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China. On April 14, 2025, [they] informed the Company that the license requirement will be in effect for the indefinite future.”
US President Donald Trump announced on Tuesday that Nvidia had agreed to invest $500 billion in building supercomputers in the United States, which is similar to Apple’s (AAPL) plan to invest in manufacturing and other capabilities over the next four years.
Nvidia stock forecast
Nvidia stock has lost its perch above support at $105. This means the mega cap could be headed for another run-in with the $92 price level that held up during the crash on August 5, 2024. Although, traders will notice that NVDA shares fell briefly below $87 on April 7.
Owing to the Death Cross pattern, wherein the 50-day Simple Moving Average (SMA) travels below the 200-day SMA, Nvidia is simply in a down cycle. With the administration's present focus on tariffs and its trade war with China, more and more traders will take the hint and begin shorting this market.
NVDA daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Consolidation seems the name of the game
AUD/USD came under further downside pressure on Thursday, adding to Wednesday’s retracement and briefly dipping below the key support at 0.6400 the figure. The pair’s pullback came despite decent losses in the Greenback and firmer Australian labour market report.
EUR/USD: Door open to further weakness
EUR/USD is starting to feel heavy, with growing concern that more downside could be just around the corner. The pair has struggled to hold onto any bullish momentum and has been steadily drifting lower since hitting yearly highs near 1.1570 in late April.
Gold hovers around $3,200 amid tepid buying
Gold kept up its bullish momentum on Thursday, climbing to fresh daily highs above the key $3,200 mark per troy ounce. The move is getting a boost from a softer Greenback and a generally cautious mood in global markets, while the initial excitement around the US–China trade deal continues to fade.
Crypto Today: SOL, XRP and ADA in danger zone as Bitcoin price anchors market above $3.4 trillion
The cryptocurrency sector declined 4% on Thursday, with aggregate market capitalization hovering precariously above the $3.4 trillion mark. Top altcoins XRP, Solana and Cardano booked losses higher than the market average, with the more resilient performance of BTC and ETH signaled a flight-to-quality trade.
Why the UK’s first quarter growth surge looks strange
The UK economy roared back to life in the first quarter after stagnating through the second half of last year. Or did it? We're not sure the data is an accurate guide to what's going on beneath the surface.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.