Nvidia and AMD Stocks Slide as U.S. Tightens AI Chip Rules for China
Tensions between Washington and Beijing are once again shaking the tech sector—this time hitting two of the world’s largest chipmakers.
Nvidia and AMD saw their shares fall sharply in after-hours trading on April 15, following news that fresh U.S. export restrictions will significantly impact AI chip sales to China.
In a regulatory filing, Nvidia revealed it expects to take a $5.5 billion hit related to inventory and purchase commitments tied to its H20 chips—the most advanced AI processors the company was still allowed to export to China. That window is now closing, as U.S. authorities informed the firm that new licenses are required for the H20 and any chip with comparable bandwidth, specifically targeting exports to China, Hong Kong, and Macau.
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Officials say the tightened controls are designed to prevent high-performance chips from ending up in Chinese supercomputers. Reports suggest the H20 had already been used in training AI models by companies like DeepSeek, a China-based startup.
While the Biden administration had initially paused the restrictions after discussions between Trump and Nvidia CEO Jensen Huang, the rule is now moving forward—casting a shadow over Nvidia’s revenue outlook for the current quarter, which ends April 27.
To mitigate the impact, Nvidia announced plans to invest hundreds of millions in domestic AI chip production over the next four years. Still, markets reacted negatively. Nvidia’s stock tumbled 6% in after-hours trading, falling to $105, while AMD slid more than 7% to $88.55. Year to date, Nvidia shares are down 22%, with AMD trailing even further, off by over 25%.
The sell-off underscores growing investor anxiety as geopolitical friction and trade barriers continue to ripple across the semiconductor industry. As one market analyst put it: “At this point, no company is immune to the weight of tariffs and export controls.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
