Nvidia, AMD to pay 15% of China chip sales revenue to US govt- FT
NVIDIA Corporation (NASDAQ:NVDA), the $2.74 trillion semiconductor giant with a perfect Piotroski Score of 9 according to InvestingPro, disclosed on Monday that the U.S. government has imposed new export restrictions affecting the company’s shipments to China, including Hong Kong and Macau, as well as to countries designated as D:5. The restrictions, which were communicated to NVIDIA on April 9, 2025, require a license for exporting the firm’s H20 integrated circuits and similar products that reach certain levels of memory and interconnect bandwidth.
This regulatory action stems from concerns over the potential use or diversion of these products to supercomputers in China. The U.S. government has indicated that the licensing requirement will remain in place indefinitely.
As a result of these restrictions, NVIDIA anticipates significant financial repercussions. The company expects to record up to approximately $5.5 billion in charges related to H20 product inventory, purchase commitments, and associated reserves in its first-quarter financial results for fiscal year 2026, ending April 27, 2025. Despite these challenges, NVIDIA maintains strong financial health with a current ratio of 4.44 and impressive revenue growth of 114.2% over the last twelve months.
In its SEC filing, NVIDIA also included cautionary language about forward-looking statements, highlighting the various risks and uncertainties that could lead to materially different outcomes than those projected. For deeper insights into NVIDIA’s valuation and growth prospects, InvestingPro offers exclusive access to 18+ additional ProTips and comprehensive financial analysis, including detailed Fair Value calculations. Such factors include global economic conditions, reliance on third-party manufacturing, competition, product acceptance, and potential defects, among others.
The company’s recent filing with the Securities and Exchange Commission, which provides additional context, is based on statements that are current as of the date of the report and are subject to change based on future events or circumstances. NVIDIA’s Executive Vice President and Chief Financial Officer, Colette M. Kress, signed the report, affirming the company’s compliance with the SEC’s reporting requirements. The company maintains a strong financial position with an overall "GREAT" Financial Health Score of 3.72 out of 5, according to InvestingPro’s comprehensive analysis.
In other recent news, NVIDIA has launched its GeForce RTX 5060 series of GPUs, incorporating advanced AI features and built on the Blackwell architecture. The new lineup includes the RTX 5060 Ti and RTX 5060 graphics cards, priced starting at $299, and promises enhanced gaming performance with DLSS 4 technology. These GPUs are designed to support both gamers and creators, offering features like Multi Frame Generation and Super Resolution. NVIDIA also introduced the GeForce RTX 5060 Laptop GPU, which aims to deliver high performance for gaming and creative work, with laptops expected to be available in May starting at $1,099.
Meanwhile, President Trump has praised NVIDIA’s investment in the U.S., highlighting it as a significant announcement. He attributed the company’s decision to build a supercomputer in the U.S. to his administration’s tariff policies, which he claims encourage domestic investment. The discussion also touched on broader economic and foreign policy issues, with Trump emphasizing the importance of manufacturing capacity in the U.S., particularly in the tech sector. Additionally, the Magnificent Seven stocks, including NVIDIA, experienced a rise in premarket trading amid discussions of a potential pause in auto tariffs. Despite the positive sentiment, the administration continues to pursue tariffs on semiconductors and pharmaceuticals.
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