Nvidia’s 2025 has been anything but easy. And it’s going to get tougher.

2025 has been difficult for NVIDIA (NVDA) so far. The company, which had a 2024 movie, suffers from the challenges that led to a decrease in the price of its share. Its latest relapse came on Tuesday when it revealed that the Trump administration will ask the company to obtain export licenses to sell H20 chips to customers in China, which prohibits sales effectively to the country.

The announcement means that NVIDIA will reserve a $ 5.5 billion fees in the first quarter of H20 products and purchase obligations. This advertisement comes at a time when president Trump is expected to enact a customs tariff on semiconductor imported from abroad.

This step will also include a tariff on devices such as laptops and desktop computers, which will also affect consumer games and institutions in NVIDIA.

Add to that the controls of the export of the prevalence of the upcoming artificial intelligence that will enter into force in May, which require certain countries to obtain special licenses to reach a limited number of artificial intelligence chips, and NVIDIA clearly fights some strong opposite winds.

It appears at the price of his share. NVIDIA shares have decreased by 24 % so far from late Thursday, and more than 6 % during the past five days alone.

But there are some bright points for the company. BlackWell chips continue to sell well, and the demand will remain strong as technology companies continue to build databases to operate artificial intelligence platforms. But this was not enough to calm investors’ fears.

The Trump administration export controls on H20 chips to China follow the disclosure of Debsik as they trained powerful Amnesty International models using NVIDIA chips from the top of the line. The news launched warnings in Washington, which is afraid that China will use technologies to enhance its position in the global artificial intelligence race and give its army an advantage over the United States.

Now NVIDIA will absorb the cost of the H20S designated for China. This will not only hit Nvidia Bottleth For Q1, but next year as well. China is the fourth largest market in NVIDIA, with sales of $ 17.1 billion in the fiscal year 2025 for the company. The United States is its largest market with $ 61.2 billion, followed by Singapore (23.6 billion dollars) and Taiwan ($ 20.5 billion).

It should be noted that NVIDIA says that Singapore represents 18 % of sales because customers use them to “concentrate bills” and that their products are always shipped to other sites. Singapore itself consists of only 2 % of sales.

According to Bofa’s Vivek Arya, H20 restrictions can lead to a 5 % reduction by 8 % for NVIDIA Financial Slugs 2026 and their effect from 6 % to 10 % on its profits per share.