U.S. Export Crackdown on Nvidia Chips Threatens AI Token Ecosystem

AI-focused cryptocurrencies are under pressure once again, following a recent warning from chipmaker Nvidia about looming financial losses tied to new U.S. government export restrictions.

In a disclosure filed on April 14, Nvidia revealed it anticipates approximately $5.5 billion in losses for the first quarter of its 2026 fiscal year. The reason? Stricter regulations now require Nvidia to obtain special export licenses to sell its advanced AI chips—including the H20 series—to China, Hong Kong, and Macau.

These rules mark a significant blow to Nvidia’s presence in China, especially since the H20 chip was the most advanced model still legally available under the prior export framework. U.S. officials now fear these chips may be fueling Chinese supercomputers or AI models—such as those developed by Chinese firm DeepSeek—raising concerns among lawmakers in Washington.

Nvidia Stock Drops, AI Tokens Follow

Nvidia’s announcement triggered an immediate market reaction. The company’s stock (NVDA) fell by 10.3% in after-hours trading on April 16, sliding to $88. Year-to-date, Nvidia is now down by around 32.45%, reflecting the growing uncertainty over its China-related business.

The selloff was part of a broader downturn in tech stocks, which are also reeling from the impact of Trump’s renewed tariff policies. Notable declines include:

Apple: down 0.20% to $202.14
Microsoft: down 0.56% to $385.73
Alphabet: down 1.71% to $156.31
Amazon: down 1.33% to $179.59

Adding to Nvidia's bearish outlook, technical analysts observed a “death cross” pattern on the NVDA/USD daily chart—where the 50-day moving average dips below the 200-day average. Historically, this has preceded major downtrends, such as the one in April 2022, when Nvidia's stock nosedived nearly 50% within six months.

Why AI Crypto Tokens Are Reacting 🥚

The ripple effects have hit the AI crypto market hard, since many of these tokens are built on infrastructure powered by Nvidia hardware. Whenever Nvidia faces setbacks, AI token sentiment often turns bearish.

This trend isn't new. In December, when China launched an antitrust investigation into Nvidia, the AI crypto market cap plunged over 14% in just one day. Similarly, bullish runs in Nvidia stock have historically lifted the value of AI tokens.

Now, with Nvidia’s export challenges, AI-related tokens are seeing renewed weakness. Over the past 24 hours alone:

AI token market cap has fallen by 3.7%, now sitting around $20.1 billion
Trading volume has also declined, signaling reduced investor appetite

Current Snapshot of Top AI Tokens 🥚

Here’s how leading AI-focused tokens are performing amid the latest Nvidia turmoil:

1. NEAR Protocol (NEAR)

Price: $1.96
24h Change: +1.02%
Market Cap: $2.37B
Volume (24h): $174.2M

2. Internet Computer (ICP)

Price: $4.66
24h Change: +0.22%
Market Cap: $2.27B
Volume (24h): $54.95M

3. Bittensor (TAO)

Price: $228.69
24h Change: +0.96%
Market Cap: $1.97B
Volume (24h): $81.52M

4. Render (RNDR)

Price: $3.66
24h Change: +0.68%
Market Cap: $1.90B
Volume (24h): $100.76M

5. Filecoin (FIL)

Price: $2.40
24h Change: +0.79%
Market Cap: $1.57B
Volume (24h): $82.77M

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Outlook: More Volatility Ahead?

As geopolitical tensions around AI technology intensify, and export restrictions tighten, AI tokens could face more turbulence in the coming months. With Nvidia still central to the AI hardware ecosystem, any policy shift or supply constraint is likely to directly impact sentiment and price movements across related crypto assets.

Investors may want to keep a close eye on both Washington’s export policy and Nvidia’s quarterly earnings moving forward, as these will likely set the tone for the next AI token cycle.

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