Nvidia has been caught by surprise by Donald Trump’s new export controls on its best-selling artificial intelligence chip in China, leaving the chipmaker and its clients to assess the damage caused by the US president’s latest salvo in an escalating trade war.
The $2.7tn semiconductor giant revealed a $5.5bn charge on Tuesday night related to new US controls on its sales to China, while industry insiders believe the hit on Nvidia’s revenue could reach more than $10bn.
The US chipmaker Intel, under chief executive Lip-Bu Tan, told its Chinese clients last week that sales of some of their advanced artificial intelligence processors would start to require a licence, according to a company email reviewed by the Financial Times and people with knowledge of the discussions.