U.S. limits selling of Nvidia's H20 chips, weighs up delisting stocks of Chinese firms

The U.S. has put a restriction on the export of Nvidia's H20 chips to China amid their trade tensions.

After the news, the chip giant saw its stocks fall sharply.

Moon Ji-young reports.

The Trump administration is seemingly enhancing its curbs on China amid escalating trade tensions.

One significant action taken is restricting Nvidia from selling its H20 chips, which have been among its most popular products, to China.

Nvidia stated on Tuesday that the Trump administration privately informed them last week that selling the H20 to China would require a license "for the indefinite future."

According to Nvidia, the new regulation addresses Washington's concerns that "the covered products may be used in, or diverted to, a supercomputer in China."

The AI chip giant warned that it expects to report about five and a half billion dollars in writedowns due to inventory issues, and the new rule will also hinder a product line specifically designed for China to comply with previous U.S. restrictions.

Following this announcement, Nvidia's stock fell by 6-point-3 percent in after-hours trading, despite having gained 1-point-3 percent during regular trading hours on the New York Stock Exchange.

Meanwhile, the announcement follows Nvidia's commitment made on Monday to invest 5-hundred billion dollars in AI infrastructure in the U.S. over the next four years.

"I believe the U.S. intends to convey that if we allow China's manufacturing capabilities to grow without significant obstacles, we risk losing our own manufacturing base. This situation seems to evoke a sense of crisis among us."

Additionally, the trade showdown is spilling over to Chinese stocks listed in the U.S.

According to Politico, U.S. administration officials are considering actions to delist nearly 300 Chinese firms trading on U.S. exchanges.

When asked about this potential during an interview with Fox Business last week,

Treasury Secretary Scott Bessent stated, "Everything is on the table."

Moon Ji-young, Arirang News.