Nvidia Stock Furthers Slide on US-China Trade Tiff

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Bill McColl

Mon, Apr 21, 2025, 6:39 AM 2 min read

Nvidia shares were heading for another losing session Monday on worries about how the trade battle between the U.S. and China could impact the AI chipmaker's results.
CEO Jensen Huang in China warned of a significant negative effect from U.S. restrictions on its chips.
Previously, Nvidia said a new licensing requirement for its key H20 semiconductors could cost $5.5 billion in the first quarter.

Nvidia (NVDA) shares headed lower for a third straight session Monday on continuing concerns the artificial intelligence (AI) chipmaker could face a major economic hit from the trade fight between the U.S. and China.

CEO Jensen Huang talked about the potential impact of new Trump administration tariffs in a visit to China last week, telling China-owned CCTV, "The increased restrictions have impacted our company significantly." Huang pointed out the importance of China to Nvidia's business, and that the company "will continue to make significant efforts to optimize our products to comply with regulations and continue serving the Chinese market."

According to reports, Huang met with several government officials, including Ren Hongbin, head of the China Council for the Promotion of International Trade, as well as Liang Wenfeng, founder of Chinese AI research firm DeepSeek, which stunned the tech world earlier this year when it said it produced an AI product at a much lower cost than traditional models.

Also last week, Nvidia reported in a regulatory filing that it was advised by U.S. officials that it would need a license to export its key H20 AI chips to China, and that requirement could result in up to $5.5 billion in charges in the first quarter.

Shares of Nvidia fell nearly 4% soon after markets opened Monday. They have lost more than a quarter of their value this year.