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AI-focused crypto tokens are experiencing a decline as Nvidia, a leading AI chipmaker, faces potential financial setbacks due to new U.S. export restrictions.

Nvidia’s Financial Impact from Export Restrictions

In a recent filing, Nvidia announced it expects approximately $5.5 billion in charges for the first quarter of fiscal year 2026. This projection stems from U.S. government regulations limiting the sales of its advanced AI chips, including the H20 model, to China, Hong Kong, and Macau. The restrictions require special export licenses for these chips, citing concerns that they could be used in Chinese supercomputers.

The H20 chip, Nvidia’s most advanced AI chip permitted for sale in China under earlier regulations, has reportedly been utilized by Chinese AI startup DeepSeek for training models. This usage has raised alarms among U.S. lawmakers, further intensifying scrutiny on Nvidia’s operations.

Nvidia’s Stock Performance

Nvidia’s stock has reacted negatively to the announcement, with shares dropping 6.3% in after-hours trading to $105.10 on April 15. Year-to-date, the stock is down by about 16.45%. Despite Nvidia’s plan to invest hundreds of millions over the next four years to manufacture some AI chips within the U.S., investor sentiment remains cautious.

Adding to Nvidia’s challenges, a bearish technical signal known as a “death cross” has appeared on its 1-day NVDA/USD chart. This occurs when the 50-day moving average falls below the 200-day moving average. The last time this pattern emerged was in April 2022, leading to a nearly 50% drop in Nvidia’s stock over six months.

Broader Tech Sector Pullback

The decline in Nvidia’s stock reflects a broader pullback in the technology sector, exacerbated by ongoing trade tensions. Other major tech stocks have also seen losses, with Apple down 0.20%, Microsoft declining 0.56%, Alphabet sliding 1.71%, and Amazon losing 1.33%.

AI Crypto Tokens React to Nvidia News

Nvidia’s struggles are having a ripple effect on the AI crypto token market, as the company’s hardware plays a significant role in supporting the AI infrastructure that many of these projects depend on. Historically, Nvidia-related news has influenced the performance of AI tokens. For instance, in December, reports of China launching an antitrust probe into Nvidia led to a 14% drop in the AI crypto token market cap within a single day. Conversely, a surge in Nvidia’s stock price has often resulted in bullish rallies for these tokens.

Following Nvidia’s recent filing, the total market capitalization of AI-related tokens has declined by 3.7% in the past 24 hours, now sitting at approximately $20.1 billion. Trading volume has also decreased, signaling weaker demand.

Performance of Major AI Crypto Tokens

The price decline has been felt across several prominent AI tokens:

  • NEAR Protocol: Down 5.3% in the last 24 hours.
  • Internet Computer (ICP): Dropped 2.27%.
  • Render (RNDR): Fell 1.28%.
  • Sei: Declined by 2.5%.
  • Virtuals Protocol: Down 4.18%.
  • Akash Network: Lost 3.32%.

Key Takeaways for Crypto Investors

For investors interested in cryptocurrencies and AI tokens, Nvidia’s situation underscores the interconnectedness of the tech and crypto markets. Monitoring developments in regulatory policies, chip manufacturing, and Nvidia’s stock performance can provide valuable insights into the future trajectory of AI-focused cryptocurrencies.

As the market continues to evolve, staying informed about external factors like government regulations and global trade dynamics will be essential for making strategic investment decisions.

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