Chips Pain: Nvidia, AMD Slide on U.S. Export Restrictions to China 4/16/25

SPEAKER_1 (0:00)

This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.

SPEAKER_2 (0:30)

This episode is brought to you by Freshworks, AI-powered service software that makes work easier and processes less complex. Are you working harder than your software? Uncomplicate your business with fresh service for IT and fresh desk for customer support. Stop wrestling with clunky tools and start focusing on what matters, delivering exceptional employee and customer experiences that drive ROI in weeks versus years. All with no hidden fees. Start working smarter, not harder, with Freshworks uncomplicated service software. Learn more at freshworks.com.

Jim Cramer (1:01)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:09)

Good Wednesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures shave off some losses as China signals openness to some trade talks, but Nvidia, joining Boeing on the list of companies, now facing some collateral damage in this trade war. Roadmap begins with Nvidia shares under some pressure. Company expects to take a $5.5 billion charge due to some new restrictions on chip exports to China.

David Faber (1:33)

Also, I had Retail March sales beating forecasts. This is the head of Fed Chair Powell's remarks on the economy. That's just a few hours from now. And United is one of the morning's bright spots, at least the stock. It is leading the group higher on better than expected earnings and advanced bookings, although it does give you two scenarios in terms of its guidance as well.

Carl Quintanilla (1:55)

Let's begin with Nvidia down sharply in the pre-market. Company says it expects to take those quarterly charges of up to $5.5 billion associated with US restrictions on its H20 GPU exports to China. In a regulatory filing, the chip maker says it was informed by the US government it now needs a license for exporting such processors to China and other countries. Please Jim, some reporting today about whether or not they kept some of their Chinese customers in the dark for about a week on some of this.

Jim Cramer (2:23)

Well, we have to look at that NPR report that April 8th has said. Look, they're probably going to be okay. I think they're holding their breath and they felt that they would be okay. So when I read that story, I just think, is that really the case that they really just say they kept the Chinese in the dark? How about they kept like everybody who owns the stock in the dark? I care more about that than I care about the Chinese, for heaven's sake. Now, maybe they really did hope and I think a lot of times what happens when you hope that something's good, you maybe get a wink and a nod. You don't feel like, well, you got to come out and say, you know, what, this could happen. I just don't really care one bit about the Chinese not being, not knowing if Jensen Wong didn't know. What are you kidding? I think Jensen Wong's an honest man. I think he didn't really know. I do believe, though, that you could be led to believe one thing in the administration and then David Bowe the other. Just take a look at what happened on Friday night when you were led to believe that perhaps there were exemptions for some tech and then on Sunday when you heard Howard Ludnick, you were led to believe that there weren't. So I don't think that Jensen is in any position other than every other executive that has been dealing with this administration.

David Faber (3:30)

Yeah, there's a lot of back and forth. Again, the exemptions is a good example. To some extent, of course, we are waiting for the National Security Review, which is now taking place in terms of chips, which obviously is also going to be important. There was that meeting between Jensen Wong and the president, Amaro Lago, a couple of weeks back now, I think we're talking at this point. But I think there was hope perhaps that something would have come out of that, that would have been helpful for the company. Doesn't appear to have been the case. Again, we are talking about age 20 chips here.