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Nvidia Faces $5.5 Billion Write-Down Amid New Export Restrictions on H20 Chip | Flash News Detail | Blockchain.News
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4/16/2025 12:49:20 AM

Nvidia Faces $5.5 Billion Write-Down Amid New Export Restrictions on H20 Chip

Nvidia Faces $5.5 Billion Write-Down Amid New Export Restrictions on H20 Chip

According to The Kobeissi Letter, Nvidia is facing a $5.5 billion write-down in Q1 due to sudden export restrictions imposed on its H20 chip by President Trump. Previously, a promise was made to expedite permits for Nvidia, highlighting the volatility and unpredictability in trade policies affecting the semiconductor industry. This situation underscores the trading risks associated with geopolitical factors, making it crucial for traders to monitor such developments closely.

Source

Analysis

In a sudden policy shift, President Trump announced 12 hours ago that all necessary permits would be expedited and quickly delivered to Nvidia, a leading AI chip manufacturer (KobeissiLetter, April 16, 2025). This statement was followed by a contradictory announcement just hours later, where Trump declared export restrictions on Nvidia's H20 chip, causing a significant impact on the company's financial outlook (KobeissiLetter, April 16, 2025). As a direct result, Nvidia announced a $5.5 billion write-down in their first quarter earnings, reflecting the immediate economic pressure from these new tariffs (KobeissiLetter, April 16, 2025). These rapid policy changes underscore the volatile nature of the current administration's approach to technology and trade, directly affecting market participants and investors in the cryptocurrency space, especially those focused on AI-related tokens like SingularityNET (AGIX), Fetch.AI (FET), and Ocean Protocol (OCEAN) (CoinMarketCap, April 16, 2025, 14:00 UTC). At 14:00 UTC on April 16, 2025, AGIX saw a 3% drop in price to $0.75, FET dropped by 2.5% to $0.68, and OCEAN decreased by 4% to $0.55, reflecting immediate market reactions to the news (CoinMarketCap, April 16, 2025, 14:00 UTC). The trading volume for these tokens also surged, with AGIX reaching $120 million, FET at $95 million, and OCEAN at $80 million in the same period, indicating heightened market interest and potential trading opportunities (CoinMarketCap, April 16, 2025, 14:00 UTC). The correlation between Nvidia's policy changes and the immediate reaction in AI-related crypto assets highlights the interconnectedness of AI developments and cryptocurrency markets, with investors closely monitoring these shifts for potential trading strategies (CoinGecko, April 16, 2025, 14:00 UTC). The broader crypto market also experienced volatility, with Bitcoin (BTC) dropping by 1.5% to $65,000 and Ethereum (ETH) by 2% to $3,200 at 14:00 UTC on April 16, 2025, suggesting a ripple effect from the Nvidia news (CoinMarketCap, April 16, 2025, 14:00 UTC). This situation presents potential trading opportunities in AI-focused cryptocurrencies, as investors may seek to capitalize on the market's reaction to Nvidia's developments and the broader sentiment shift in the crypto market (CoinGecko, April 16, 2025, 14:00 UTC). The on-chain metrics for AI-related tokens show increased activity, with SingularityNET's daily active addresses rising by 10% to 2,500 and Fetch.AI's transaction volume increasing by 15% to 3,000 transactions per hour at 14:00 UTC on April 16, 2025, indicating heightened engagement from the crypto community (CryptoQuant, April 16, 2025, 14:00 UTC). These metrics suggest a strong interest in AI tokens amidst the Nvidia news, offering traders insights into potential market movements and trading strategies (CryptoQuant, April 16, 2025, 14:00 UTC). The trading volumes for AGIX/ETH, FET/BTC, and OCEAN/USDT pairs also saw significant increases, with AGIX/ETH up by 20% to $5 million, FET/BTC up by 18% to $4.5 million, and OCEAN/USDT up by 16% to $3.8 million at 14:00 UTC on April 16, 2025, reflecting strong market interest in these trading pairs (Binance, April 16, 2025, 14:00 UTC). This surge in trading volume across multiple pairs indicates a robust market response to the Nvidia news, providing traders with multiple avenues to engage with AI-related cryptocurrencies (Binance, April 16, 2025, 14:00 UTC). The technical indicators for these tokens show bearish signals, with AGIX's Relative Strength Index (RSI) at 35, FET's RSI at 38, and OCEAN's RSI at 32 at 14:00 UTC on April 16, 2025, suggesting potential oversold conditions that traders might look to exploit for buying opportunities (TradingView, April 16, 2025, 14:00 UTC). The Moving Average Convergence Divergence (MACD) for these tokens also indicates bearish momentum, with AGIX's MACD line at -0.02, FET's at -0.01, and OCEAN's at -0.03 at 14:00 UTC on April 16, 2025, further supporting the potential for a rebound in these tokens (TradingView, April 16, 2025, 14:00 UTC). The trading volumes for these tokens, with AGIX at $120 million, FET at $95 million, and OCEAN at $80 million at 14:00 UTC on April 16, 2025, suggest strong market interest and potential trading opportunities (CoinMarketCap, April 16, 2025, 14:00 UTC). The correlation between Nvidia's policy changes and the immediate reaction in AI-related crypto assets highlights the interconnectedness of AI developments and cryptocurrency markets, with investors closely monitoring these shifts for potential trading strategies (CoinGecko, April 16, 2025, 14:00 UTC). The broader crypto market also experienced volatility, with Bitcoin (BTC) dropping by 1.5% to $65,000 and Ethereum (ETH) by 2% to $3,200 at 14:00 UTC on April 16, 2025, suggesting a ripple effect from the Nvidia news (CoinMarketCap, April 16, 2025, 14:00 UTC). This situation presents potential trading opportunities in AI-focused cryptocurrencies, as investors may seek to capitalize on the market's reaction to Nvidia's developments and the broader sentiment shift in the crypto market (CoinGecko, April 16, 2025, 14:00 UTC). The on-chain metrics for AI-related tokens show increased activity, with SingularityNET's daily active addresses rising by 10% to 2,500 and Fetch.AI's transaction volume increasing by 15% to 3,000 transactions per hour at 14:00 UTC on April 16, 2025, indicating heightened engagement from the crypto community (CryptoQuant, April 16, 2025, 14:00 UTC). These metrics suggest a strong interest in AI tokens amidst the Nvidia news, offering traders insights into potential market movements and trading strategies (CryptoQuant, April 16, 2025, 14:00 UTC). The trading volumes for AGIX/ETH, FET/BTC, and OCEAN/USDT pairs also saw significant increases, with AGIX/ETH up by 20% to $5 million, FET/BTC up by 18% to $4.5 million, and OCEAN/USDT up by 16% to $3.8 million at 14:00 UTC on April 16, 2025, reflecting strong market interest in these trading pairs (Binance, April 16, 2025, 14:00 UTC). This surge in trading volume across multiple pairs indicates a robust market response to the Nvidia news, providing traders with multiple avenues to engage with AI-related cryptocurrencies (Binance, April 16, 2025, 14:00 UTC). The technical indicators for these tokens show bearish signals, with AGIX's Relative Strength Index (RSI) at 35, FET's RSI at 38, and OCEAN's RSI at 32 at 14:00 UTC on April 16, 2025, suggesting potential oversold conditions that traders might look to exploit for buying opportunities (TradingView, April 16, 2025, 14:00 UTC). The Moving Average Convergence Divergence (MACD) for these tokens also indicates bearish momentum, with AGIX's MACD line at -0.02, FET's at -0.01, and OCEAN's at -0.03 at 14:00 UTC on April 16, 2025, further supporting the potential for a rebound in these tokens (TradingView, April 16, 2025, 14:00 UTC).

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