Rishi Iyengar and Lili Pike
For a company worth nearly $3 trillion, facing an unexpected cost of a few billion dollars may sound relatively paltry. But U.S. chipmaker Nvidia’s announcement in a regulatory filing earlier this month that it expected to incur costs of up to $5.5 billion as a result of new U.S. export controls sent the company’s stock tumbling more than 6 percent the following day and caused a collective shiver throughout the semiconductor chip industry.
Nvidia’s hefty financial hit comes from a new Trump administration rule requiring the company to acquire a special license to sell its H20 chips in China, adding another hurdle in accessing one of the world’s biggest tech markets and the United States’ foremost competitor in the race for artificial intelligence.
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