The US imposes new restrictions on the export of Nvidia AI chips to China.

The administration of US President Donald Trump has banned Nvidia Corp. from selling its H20 chip in China. This information is reported by Bloomberg.

The US government informed Nvidia that it must have a license to export the H20 chip to China 'indefinitely.' The new rules apply to products that can be used in Chinese supercomputers, raising concerns in Washington, the company stated.

Markets reacted negatively to the news. Following the announcement of the ban, Nvidia's shares fell by 6% by the end of trading, leading to a broad sell-off of semiconductor shares from the US to Japan. South Korean chipmakers Samsung Electronics Co. and SK Hynix Inc. experienced a loss of about 3% in value. Shares of Advanced Micro Devices Inc., a competitor of Nvidia in the AI chip market, also declined.

Nvidia itself warned of expected losses of around $5.5 billion during the current quarter due to inventory and contractual obligations.

Trump's Commerce Secretary Howard Lutnick had previously promised to be 'very resolute' regarding restrictions on Chinese chips, particularly after the emergence of the startup DeepSeek, which is working on developing artificial intelligence. Recently, the US imposed sanctions on dozens of Chinese firms, which, according to Trump administration officials, were linked to Beijing's military efforts.

Experts view the tightening of rules for Nvidia as part of the trade war between the US and China, and as a reaction to concerns about China's rise in the electronics sector.

It is worth noting that the H20 chip was developed by Nvidia in accordance with the restrictions that were imposed in 2023 for another processor, the H800, intended for the Chinese market. Although H20 is less powerful, it can still be used for the development and deployment of AI software and services.

The ban on Nvidia's sale of its H20 chip in China has led to a negative reaction in financial markets. Nvidia's shares fell by 6% by the end of trading, and the shares of other semiconductor companies also significantly decreased. Relations between the US and China are deteriorating due to the trade war and China's rise in the electronics sector. However, this may affect the further development of artificial intelligence, as the H20 chip has capabilities for developing AI software and services. Moreover, Nvidia expects significant financial losses due to inventory and obligations.