Nvidia, the leading manufacturer of artificial intelligence chips, forecasts a loss of $8 billion in revenue in the second quarter of 2025 due to new US export restrictions regarding H20 chips intended for the Chinese market. These restrictions, imposed by the Trump administration, require a license to sell H20 chips to China, effectively shutting down a market valued at $50 billion for Nvidia.
In the first quarter, the company already suffered losses of $4.5 billion due to inventory write-offs and a $2.5 billion loss in potential revenue from undelivered chips. Nvidia CEO Jensen Huang emphasized the strategic importance of China, noting that half of the world's AI researchers work there. According to him, the restrictions not only harm Nvidia but also weaken the US position, contributing to the development of Chinese chip manufacturers like Huawei.
The company is seeking alternative ways to maintain its presence in the Chinese market, including the development of modified versions of H20 chips that meet new requirements. Despite these challenges, Nvidia demonstrates steady growth, with revenue of $44.1 billion in the first quarter.
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