NVIDIA should suffer a financial loss of US $ 5.5 billion after US authorities impose further export restrictions on its H20 Hgx GPU AI. The US government cites memory, H20 interconnection bandwidth and potential use in supercomputers as reasons for restrictions.
And it was not just NVIDIA to harmed. The US Department of Commerce has also restricted AMD Instinct M308 sales to China.
The Trump government planned to restrict Nvidia Hgx sales and similar processors from April. Jensen Huang, the company’s executive director, would have even participated in a dinner with the US president, at a cost of $ 1 million per person to relieve concerns.
The strategy did not work and now The company will have an expense of $ 5.5 billion in the first quarter due to the inventory not sold from its GPUS H20.
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Reasons and Loss
The main reason for the restrictions is the US tariff fight with China. Even today, the US increased rates on Chinese products to 245% without notice.
According to the report available, The company expects the results of the first quarter to include “up to approximately US $ 5.5 billion in expenses associated with H20 products for stock, purchase commitments and related reserves.” The first quarter of NVIDIA’s 2026 fiscal year ends on April 27, 2025.
The US government admits that it is not to imagine that the company sells the H20 HGX to companies that make supercomputers, but that there is The risk of products being “diverted to a supercomputer in China”. And the requirement of the license will remain in force indefinitely.
As it would be expected, the company’s actions dawned down. The fall reached 5.80%.
About the h20 hgx
The Nvidia Hgx Hgx is a reduced version of the H100 processor. It was designed specifically to meet the restrictions imposed by the US government to the GPUS to China at the end of 2022. Compared to the H100, the H20 performs significantly reduced AI performance and drastically reduced HPC performance.
The reduction in performance makes it unique for supercomputer workloads that require computational accuracy FP64.
The H20 HGX still has 96 GB of HBM3 memory with a maximum bandwidth of 4 TB/if 900 GB/s NVLINK interconnections to build 8 -way AI servers. With this, it provides competitive performance in AI workloads and has become quite popular in China.
Chinese companies such as Alibaba, Bytedance and Tencent have implemented major training clusters and AI inference based on these GPUS. In the first quarter of 2025, Chinese technology giants spent $ 16 billion in GPUS H20 HGXbefore the export restrictions provided for by the US government from May.
In addition to restricting Nvidia’s H20 GPUS sales to Chinese customers, the US Department of Trade has also restricted AMD Instinct M308 remittances to China and other countries in the region. In the case of AMD, as the company is considerably behind Nvidia in GPUS sales with AI, it will hardly suffer the same drastic business effect.
Source: Nvidia.
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Source: https://www.adrenaline.com.br/nvidia/nvidia-sofre-prejuizo-de-us-55-bilhoes-em-gpus-apos-governo-dos-eua-cortar-envio-de-h20s-a-china/
