AI-focused crypto tokens are declining as Nvidia, the leading AI chipmaker, faces potential financial losses from new U.S. export restrictions.
In an April 14 filing, Nvidia projected about $5.5 billion in charges for the first quarter of fiscal year 2026 due to U.S. government regulations limiting AI chip sales to China.
On April 9, Nvidia was informed that it now requires special export licenses for its popular H20 chips and similar products. These restrictions apply to China, Hong Kong, and Macau, as the government expressed concerns that the chips could be used in Chinese supercomputers.
The H20 chip is currently Nvidia’s most advanced AI chip permitted for sale in China, reportedly deployed by Chinese AI startup DeepSeek for model training, raising alarm among U.S. lawmakers.
Despite plans to invest hundreds of millions over the next four years to manufacture some AI chips in the U.S., Nvidia’s stock has fallen following the filing and anticipated revenue impacts. On April 15, shares dropped 6.3% in after-hours trading to $105.10, down about 16.45% year-to-date.
Nvidia’s decline reflects a broader tech pullback as investors react to escalating tariffs under the Trump administration. Major tech stocks also fell: Apple decreased 0.20% to $202.14, Microsoft 0.56% to $385.73, Alphabet 1.71% to $156.31, and Amazon 1.33% to $179.59.
Compounding Nvidia’s challenges, a “death cross” has formed on the 1-day NVDA/USD chart, a bearish signal where the 50-day moving average falls below the 200-day moving average. The last occurrence in April 2022 resulted in a nearly 50% stock plunge over the next six months.
Investors in AI crypto tokens are on edge, as these tokens typically react strongly to Nvidia-related news, given that Nvidia’s hardware is crucial for the AI infrastructure many of these projects depend on.
In December, news of China’s antitrust probe into Nvidia triggered a 14%+ single-day drop in the AI crypto token market cap. Conversely, a rise in Nvidia’s stock price has historically triggered bullish rallies for AI tokens.
Following Nvidia’s latest filing, the market cap of AI-related tokens has decreased by 3.7% in the past 24 hours, now approximately $20.1 billion, with trading volume also declining, indicating weaker demand.
NEAR Protocol , the largest AI crypto token by market cap, fell 5.3% over the past day. Other major tokens, including Internet Computer (down 4.34%), Render (down 5.58%), Sei (down 6.14%), Virtuals Protocol (down 11.49%), and Akash Network (down 5.8%), also experienced losses ranging from 5% to 12%.
