Nvidia Stock Falls on Export Control Warning. Why This Could Be a Great Buying Opportunity.
Shares of Nvidia (NASDAQ: NVDA) tumbled after the company revealed that it will incur a $5.5 billion charge in the first quarter related to its H2O graphics processing units (GPUs) due to new export restrictions on the sale of its chips to countries like China. Nvidia's stock has had a tough start to 2025, with its share price down about 25% as of this writing.A dumbed-down version of its H100 and H200 GPUs, Nvidia's H20 chip was designed specifically to sell into the Chinese market to meet prior export control restrictions. These chips have lower bandwidth and slower interconnection speeds to meet export guidelines. However, it will now require an export license to China to sell any chips.China was Nvidia's fourth-largest geography in fiscal year 2024, with $17 billion in sales last year. However, last quarter, the company reported that its revenue from China had dropped by half compared to the period before the original export restrictions were implemented. DeekSeek's popular R1 model was supposedly trained on H20 chips.Continue reading
Shares of Nvidia (NASDAQ: NVDA) tumbled after the company revealed that it will incur a $5.5 billion charge in the first quarter related to its H2O graphics processing units (GPUs) due to new export restrictions on the sale of its chips to countries like China. Nvidia's stock has had a tough start to 2025, with its share price down about 25% as of this writing.
A dumbed-down version of its H100 and H200 GPUs, Nvidia's H20 chip was designed specifically to sell into the Chinese market to meet prior export control restrictions. These chips have lower bandwidth and slower interconnection speeds to meet export guidelines. However, it will now require an export license to China to sell any chips.
China was Nvidia's fourth-largest geography in fiscal year 2024, with $17 billion in sales last year. However, last quarter, the company reported that its revenue from China had dropped by half compared to the period before the original export restrictions were implemented. DeekSeek's popular R1 model was supposedly trained on H20 chips.