Nvidia warns of $5.5B hit from restrictions on China chip exports

00:00 Speaker A

Shares of Nvidia, they are down arsenic the institution warns of a 5 and a fractional cardinal dollar deed from US curbs connected China. The informing dragging down semis and banal futures this morning. Here to interruption down what we cognize truthful acold from the filing, we've got Yahoo finances Dan Howley here. Dan, what tin we benignant of marque from what Nvidia did benignant of disclose present to investors done the SEC filing?

00:27 Dan Howley

Yeah, they said they're going to instrumentality this 5.5 cardinal dollar complaint connected H20 products. Uh that's for inventory acquisition commitments and related services. Now, what the authorities present is saying is that they present request a licence to export their H20 chips. Those were fundamentally the chips that they were relying connected to beryllium capable to merchantability into the the Chinese market. Now, they had antecedently tried to physique chips that were little almighty than apical of the line. Uh those were the A bid chips that they had had. The US authorities had said no, that's those those are inactive excessively powerful. Nvidia came backmost and said, okay, what astir these chips, these H20 chips? Uh the H stands for Hopper successful this case, and they fundamentally said, uh now, no. And they were making decent wealth retired of China. Let's conscionable look astatine immoderate of the gross that they brought successful 17.1 cardinal from China successful 2025. That was up from 10.3 cardinal successful 2024 and 5.7 cardinal successful 2023. China is its 4th largest market. That's down the United States, Singapore and Taiwan. Uh China including Hong Kong. Now, 1 of the absorbing things Nvidia points retired successful its filings is that Singapore, portion it is its 2nd largest market, is truly benignant of a benignant of mode presumption for Nvidia's chips wherever radical acquisition them and past they extremity up successful different destinations. So that mightiness beryllium thing absorbing to look astatine successful the aboriginal if the US authorities is trying to clamp down connected immoderate of these chips getting to to China and if possibly purchasers tin bring them from Singapore to China. I deliberation that's 1 of the things that, you know, is is going to beryllium looked astatine heavily, particularly considering that Taiwan is its 3rd largest market.

03:20 Speaker A

Yeah, and I privation to get to ASML portion we person you, Dan, but ace speedy here, this is not Nvidia's astir almighty chip, right? Does that play into however large of an interaction this could person connected them?

03:32 Dan Howley

No. You know, I mean, the the happening is what Jensen Wong has said is that, you know, look, we'll we'll proceed to vie successful China arsenic agelong arsenic we can. Uh the thought that they weren't selling the astir almighty chip, it's not the astir uh uh borderline that they would get. Um Blackwell is conscionable present launching and being used. Um Blackwell Ultra is their adjacent generation. Uh truthful it's not it's not Blackwell, it's not Blackwell Ultra, it's not adjacent the the champion Hopper spot that they have. So it's it's a further backmost mentation of Hopper oregon or oregon benignant of telephone it nerfed mentation of Hopper. Um but no, it's not obscurity adjacent their astir almighty chip.

05:18 Speaker A

And I bash privation to get to ASML. The orders missing estimates, astir 60 seconds left. How large of a work done mightiness that person to the different semi names?

05:27 Dan Howley

I deliberation that's going to beryllium a immense deal. I mean, look, evidently ASML, they physique the the instrumentality that builds chips. Now, you know, there's a ton of factories being enactment up close present oregon fabs being enactment up close now. TSMC evidently talking astir investment, Intel talking astir concern though they did enactment immoderate of their concern connected hold. Uh truthful I deliberation erstwhile you look astatine thing similar this, it's, okay, what does this mean for evidently the aboriginal of spot gathering and aboriginal of demand? Uh and I think, you know, mates that with what's going connected with China here. I deliberation it's going to beryllium a hard study for for Nvidia erstwhile they bash yet denote their earnings. They're the latest fundamentally erstwhile it comes to Big Tech. Um I deliberation the extremity of May. Uh and truthful it could beryllium a resistance connected on their guardant guidance if they adjacent contented it considering each the tariff concern going on.

06:43 Speaker A

All right, Dan, convey you truthful much. Really admit it.