AI crypto tokens are declining as Nvidia faces $5.5 billion losses due to U.S. export restrictions on AI chips to China. The H20 chip, now requiring export licenses, has raised concerns in Washington. Nvidia’s stock fell 6.3% post-filing, implicating wider tech market weaknesses. This downturn has adversely affected the AI crypto market, with total market cap decreasing by 3.7% and major tokens recording notable losses.
AI-focused crypto tokens are experiencing a decline as Nvidia, the leading AI chipmaker, anticipates a significant financial impact due to new U.S. export restrictions. In a filing dated April 14, Nvidia predicted charges of approximately $5.5 billion for the first quarter of fiscal year 2026 owing to enforced limits on AI chip sales to China.
As of April 9, Nvidia was informed that export licenses are now required for the sale of its popular H20 chips and others with similar functions. These restrictions specifically target China, Hong Kong, and Macau, with concerns that the chips could be utilised in Chinese supercomputers.
The H20 chip, Nvidia’s most advanced AI chip permitted for sale in China under prior regulations, has been reportedly employed by the Chinese AI startup DeepSeek for model training, raising alarms among U.S. lawmakers. Although Nvidia plans substantial investments in AI chip production within the U.S. over the next four years, its stock fell following the filing, dropping 6.3% in after-hours trading on April 15 to $105.10.
Nvidia’s stock has declined approximately 16.45% this year, reflecting a broader downturn in the tech sector amid escalating tariffs that are unsettling investor confidence. Other technology giants, including Apple, Microsoft, Alphabet, and Amazon, also reported losses in stock price following these developments.
Moreover, a bearish “death cross” has appeared on Nvidia’s 1-day NVDA/USD chart, indicating potential further declines. This technical signal indicates a crossover where the 50-day moving average falls below the 200-day average, which previously led to substantial stock depreciation.
The implications of Nvidia’s impending revenue challenges are causing concern among investors in AI crypto tokens. Historical trends show these tokens are sensitive to Nvidia’s news, as its hardware is essential to the AI infrastructure underpinning these projects. For example, December reports of China’s investigation into Nvidia led to a rapid 14% decline in the AI crypto market cap within one day.
Since Nvidia’s recent filing, the overall market capitalisation of AI-related tokens has fallen by 3.7%, now approximately at $20.1 billion. Trading volumes in the sector have also diminished, indicating declining demand. The largest AI crypto asset by market cap, Near Protocol (NEAR), experienced a 5.3% decrease, while notable tokens such as Internet Computer (ICP), Render (RENDER), Sei (SEI), Virtuals Protocol (VIRTUAL), and Akash Network (AKT) witnessed declines ranging from 5% to 12%.
