AI-focused Crypto Tokens Face Uncertainty as Nvidia Faces Export Restrictions
The world of AI-focused crypto tokens is experiencing a downturn as Nvidia, a top AI chipmaker, faces potential financial challenges due to new U.S. export restrictions.
In a recent filing on April 14, Nvidia disclosed that it anticipates approximately $5.5 billion in charges for the first quarter of fiscal year 2026 as a result of restrictions imposed by the U.S. government on its AI chip sales to China.
The U.S. government recently informed Nvidia that it now requires special export licenses for its H20 chips and other similar products. These restrictions specifically target China, Hong Kong, and Macau, with concerns raised about these chips potentially being used to power Chinese supercomputers.
One of Nvidia’s most advanced AI chips, the H20 chip, is currently the only chip the company is permitted to sell in China under the previous regulations. Reports suggest that Chinese AI startup DeepSeek has utilized these chips for model training, prompting scrutiny from U.S. lawmakers.
Despite Nvidia’s plans to invest hundreds of millions of dollars in producing AI chips in the U.S. over the next four years, the news of the impending financial impact and reduced future revenues has led to a decline in the company’s stock. NVDA saw a 6.3% drop in after-hours trading on April 15, reaching $105.10, and has decreased by approximately 16.45% since the beginning of the year.
Impact on the Tech Sector
Nvidia’s struggles are reflective of a broader trend in the tech industry, with escalating trade tensions impacting investor confidence. Other major tech stocks, including Apple, Microsoft, Alphabet, and Amazon, also experienced declines as a result of these uncertainties.
Furthermore, Nvidia’s stock chart has displayed a “death cross” on the 1-day NVDA/USD chart, a bearish indicator signaling potential further declines. Historically, such occurrences have led to substantial drops in Nvidia’s stock price, with a previous instance resulting in a nearly 50% decrease over six months in 2022.
AI Crypto Tokens React
Investors in AI crypto tokens are closely monitoring the situation, as Nvidia’s hardware is integral to the AI infrastructure supporting many of these projects. Past instances have shown that AI tokens often respond to Nvidia-related news, with the market cap of AI-related tokens experiencing fluctuations in response to developments concerning the chipmaker.
Following Nvidia’s recent filing, the total market cap of AI-related tokens has fallen by 3.7% in the past 24 hours, reaching approximately $20.1 billion. This decline in market cap has been accompanied by a decrease in trading volume, indicating weakened demand.
Leading AI crypto tokens, such as Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), Sei (SEI), Virtuals Protocol (VIRTUAL), and Akash Network (AKT), have all seen declines ranging from 5% to 12% over the past day.