AI-focused crypto tokens have seen some volatility in the last few days. The seas can get choppier as Nvidia just released a statement saying that Nvidia might have to pay 5.5 billion USD in charges in the first part of fiscal year 2026. This is primarily because the US government is creating rules limiting the sale of AI chips in China.
President Trump recently issued a statement suggesting that the US will impose heavy tariffs and restrictions on China. On April 9th, officials released a statement indicating the company needs special export licenses for its popular H20 chips. This new regulation targets China, Macau, and Hong Kong.
Downward Spiral
This decision is based on the assumption that Nvidia’s H20 chipset is one of the most powerful chipsets in existence. Therefore, it is likely that the chipset could power the supercomputers of China and its allies. Therefore, the US government believes that the chipset needs to be regulated.
Speculations suggest that this could impact Nvidia’s overall financial health. Already, Nvidia is seeing a 6.3% drop in its after-hours trading. In the bigger picture, the asset has lost close to 16.45%.
Adding fuel to the fire, investors have noticed that a ‘death cross’ has formed on the NVDA/USD chart. This is bad news since it suggests a bearish movement, which suggests that the stock’s price could cascade further. The last time something like this happened, the company lost around 50% of its innate value.
This is not good news for investors looking to invest in Nvidia’s AI-driven crypto tokens. Hence, the AI cry[pto market is currently in a fugue state.
