Nvidia expects 5.5bn hit as US tightens chip export rules to China

Nvidia announced on Tuesday that the US government had told it last week that the H20 chip required a permit to be sold to China, including Hong Kong. The tech giant said federal officials had advised them the licence requirement "will be in effect for the indefinite future". "The [government] indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China," Nvidia said. The company declined to comment further when contacted by the BBC. Marc Einstein from the Counterpoint Research consultancy said the 5.5bn hit estimated by Nvidia was in line with his estimates.