Nvidia Takes $5.5B Hit as Trump’s Trade War Escalates — AI Innovation at Risk ⚠️💻

Nvidia, the global leader in AI chips, is facing a $5.5 billion financial hit as the Trump administration imposes new export restrictions on its H20 chips to China. These chips were specifically designed to comply with previous export rules — but now even they’re banned, in the latest move in the US-China trade war.

The restrictions mark a significant blow to Nvidia's China revenue (13% of its sales) and come as Washington moves to prevent China from advancing its military and AI capabilities. Meanwhile, China's AI firms like DeepSeek are pushing forward — but US tech giants warn the trade war could derail global innovation.

Key Highlights:

Nvidia stock drops nearly 7% after $5.5B loss announcement

New export rules ban H20 chip sales to China despite prior compliance

Trump administration ramps up pressure amid broader tech restrictions

China’s DeepSeek AI surge fuels US fears of falling behind

WTO warns tariffs could slash US GDP growth by 1.6 percentage points

Nvidia and others say the curbs threaten global innovation

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