US bans Nvidia from selling H20 chip to China, shares drop 6%

Nvidia shares fell sharply, dropping about 6%, after the company announced it would take a $5.5 billion charge linked to new US government restrictions on exporting its H20 artificial intelligence (AI) chips to China. The H20, Nvidia’s most advanced AI chip currently available in China, had become a critical product for the country’s booming AI sector.

The Donald Trump-led US government formally informed Nvidia on April 9 that it would require a license to export the H20 to China and other countries, citing national security concerns.