Stocks tumbled on Wednesday following news that computer chipmaker Nvidia was taking a $5.5 billion charge to comply with a new Trump administration rule on tech-related exports. The announcement caused Nvidia shares to drop by more than 5%, leading to declines in the Nasdaq and S&P 500. The Dow Jones Industrial Average also fell by about 0.4% or 150 points. The charge relates to a new rule that applies to Nvidia’s H20 chips, designed to meet Biden-era regulations for selling tech products to China. These chips generated an estimated $12 billion to $15 billion in revenue in 2024. The new rule by Trump officials requires an export license for the H20s due to concerns about them being used in Chinese supercomputers. Nvidia, a key player in the tech industry, has seen its shares decline by 23% year to date as a result of Trump’s trade war. This decline has contributed to broader market sell-offs following Trump’s announcement of proposed tariffs on “Liberation Day” in April. Despite the market volatility, Nvidia remains a dominant force in the tech sector, valued at nearly $3 trillion.
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Markets tumble as Nvidia reveals $5.5 billion charge to meet new Trump regulation
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