semiconductor Nvidia planning to resume sales of a key AI chip uh to China. The company saying it's filing applications with the US government to restart sales of its H20 graphics processing unit and expects to get the licenses soon. Vidia has been saying that it introduced a new model designed to meet Chinese tech regulations.Now, Chinese tech stocks popping on the back of this news. The developments coming days after Nvidia CEO Jensen Wong meeting with President Trump back in April. You might remember the ...

Core Insights - Nvidia faces a new US licensing requirement for exporting its H20 graphics processing units (GPUs) to China due to concerns that these chips may be used in supercomputers [2][3] - The company anticipates a financial impact of approximately $5.5 billion in the current fiscal quarter due to this licensing requirement, which affects inventory, purchase commitments, and related reserves [5][4] - The licensing requirement for H20 chips is expected to last indefinitely, adding to the existing restrictions on Nvidia's most advanced GPUs tailored for artificial intelligence [4][6] Financial Impact - Nvidia expects to incur charges of up to $5.5 billion in the first quarter results related to H20 products [5] - The current fiscal quarter for Nvidia ends on April 27, which may reflect the immediate financial consequences of the new licensing rule [4] Market Reaction - Following the announcement of the licensing requirement, Nvidia's shares experienced a decline of over 6% in after-market trading [3] - The overall market has shown volatility since the announcement of tariffs by US President Donald Trump, with a sharp decline followed by a partial recovery due to a temporary pause on tariff increases [7] Strategic Context - Nvidia's CEO has emphasized the company's commitment to balancing legal compliance with technological advancements, despite the challenges posed by US-China trade tensions [6] - The US government views China as a strategic competitor in technology, leading to restrictions on the sale of advanced AI chips to the country [6]