Reports have emerged that the U.S. government is considering additional export sanctions against Nvidia, the leading player in artificial intelligence (AI) chips, to China.
On the 29th (local time), Bloomberg News reported, citing multiple anonymous sources, that there is a possibility of expanding the scope of export controls to China on Nvidia's H20 chip products. The H20 is a low-spec product launched by Nvidia in accordance with the existing U.S. government's export controls to China.
Bloomberg noted that during the Biden administration, including the H20 in the list of export controls was discussed but did not materialize. With the Trump administration now in office, it is expected that it will take time for actual regulations to be implemented.
Bloomberg's report came amid the turmoil in the global market following the release of a new AI model by the Chinese startup Deepseek. Amid forecasts that the spread of Deepseek's low-cost AI model development method could render Nvidia's expensive chips unnecessary, Nvidia's stock plummeted by 16.97% on the 27th.
On the 29th, Nvidia's stock closed down 4.10% in the wake of Bloomberg's report. Since 2022, Nvidia has faced export restrictions to China, yet the Chinese market remains its largest export share. If additional regulations materialize, a hit to Nvidia's revenue is unavoidable.