Nvidia faces unprecedented challenges as political, legal, and market pressures converge. The U.S. government has imposed a 15% revenue levy on Nvidia and AMD’s chip sales to China, following weeks of negotiations and a high-profile meeting between Nvidia’s CEO and U.S. officials. Analysts estimate Nvidia’s China revenue at $20 billion this year, meaning the tax could cost the company $2.55 billion. Meanwhile, Chinese state media has escalated security concerns over Nvidia’s H20 chips, labeling them unsafe and outdated.
Legal Woes Compound Troubles
A German tech firm has filed a patent infringement lawsuit against Nvidia at the European Unified Patent Court, targeting core AI supercomputer technologies used in its DGX product line. The plaintiff seeks a sales ban in 18 European countries and damages, alleging Nvidia accessed patented designs during 2019 collaboration talks. With its stock already under pressure—falling 1.25% pre-market—and quarterly results due soon, investors brace for further volatility as Nvidia navigates this perfect storm.
