Nvidia Faces $5.5 Billion Revenue Hit from US China AI Chip Sales Clampdown

US Chip Sales Restrictions to China

• 🇺🇸 The US has implemented a clampdown on AI chip sales to China, which could cost Nvidia $5.5 billion in revenue.
• 📉 This announcement caused Nvidia's shares to tumble approximately 6% in after-hours trading.
• ⚠️ AMD's chip sales to China were also placed under similar curbs as part of the Trump administration's strategy to maintain an AI advantage over China.

Impact on Chip Equipment Makers

• 💰 US tariffs could result in over $1 billion in costs for chip equipment makers, according to sources familiar with the matter.
• 🎯 Firms like Applied Materials, Lamb Research, and KA are identified as the most impacted by these tariffs.

ASML and Market Performance

• 📈 ASML, a major supplier of computer chip equipment, saw its share price drop around 7% in early European trade.
• 🔮 Despite increased uncertainty for its 2025 and 2026 outlook due to tariffs, ASML maintained its annual guidance, largely attributed to AI growth.
• 🌍 European shares faltered, and Wall Street futures indicated a weak start to the trading day.

Gold Futures and China's GDP

• 🥇 Gold futures reached a new record high, with one ounce costing around $3,300, driven by rising demand for safe-haven assets amid global trade and economic growth concerns.
• 🇨🇳 China's first-quarter GDP grew by 5.4%, exceeding forecasts due to strong consumption and industrial output.
• ⚠️ Analysts express concern that US tariff plans could negatively impact China's economic momentum for the remainder of the year.

Retail Sales Outlook

• 🛒 Retail sales in the US are expected to have risen by 1.3% in March, a significant increase from February's 0.2%.
• 🚗 Excluding car sales, US retail sales are projected to have increased by 0.3%.