Nvidia's China Risk: Is It a Red Flag for Investors?

Shares of Nvidia (NASDAQ: NVDA) tumbled last week after the company announced that it would take a charge of up to $5.5 billion related to China export restrictions.The company said it would no longer be able to export its H20 chip, a less powerful version of its H100 GPU and designed to comply with earlier export rules, without a license. Nvidia's filing implies that getting a license is unlikely. Wall Street analysts had varying estimates of the impact to Nvidia's bottom line. Wedbush said that the restriction would lower its revenue by 10%. Bank of America said a "dire" tariffs scenario would reduce revenue by 9% to 13% in 2025 and 2026. The reduction in Nvidia's revenue will be more than the $5.5 billion charge since that reflects the cost of the chips rather than their selling price. Continue reading

Apr 22, 2025 - 13:41

Nvidia's China Risk: Is It a Red Flag for Investors?

Shares of Nvidia (NASDAQ: NVDA) tumbled last week after the company announced that it would take a charge of up to $5.5 billion related to China export restrictions.

The company said it would no longer be able to export its H20 chip, a less powerful version of its H100 GPU and designed to comply with earlier export rules, without a license. Nvidia's filing implies that getting a license is unlikely.

Wall Street analysts had varying estimates of the impact to Nvidia's bottom line. Wedbush said that the restriction would lower its revenue by 10%. Bank of America said a "dire" tariffs scenario would reduce revenue by 9% to 13% in 2025 and 2026. The reduction in Nvidia's revenue will be more than the $5.5 billion charge since that reflects the cost of the chips rather than their selling price.