The market for AI crypto tokens is experiencing downward pressure following news that Nvidia, a key supplier of the high-performance chips vital for AI development, anticipates a significant financial impact from new U.S. export controls.
In an April 14 regulatory disclosure, Nvidia projected approximately $5.5 billion in charges for the first quarter of its 2026 fiscal year. This stems directly from U.S. government regulations restricting the sale of advanced AI chips to China.
Effective April 9, Nvidia requires specific export licenses for its H20 chips and comparable technology destined for China, Hong Kong, and Macau. U.S. officials expressed concerns that these chips could potentially enhance China’s supercomputing capabilities.
The H20 chip represents the most sophisticated AI processor Nvidia could previously sell in China under existing rules. Reports indicated its use by Chinese AI firms like DeepSeek for model training, amplifying governmental concerns.
While Nvidia announced multi-year, multi-million dollar plans to manufacture certain AI chips domestically within the U.S., this hasn’t shielded its stock from volatility. Following the filing and the anticipated revenue hit, NVDA shares fell 6.3% in after-hours trading on April 15 to $105.10, contributing to a year-to-date decline of roughly 16.45%.
This downturn mirrors broader weakness in the technology sector, as renewed trade tensions potentially dampen investor enthusiasm. Other major tech players also saw declines, including Apple (-0.20% to $202.14), Microsoft (-0.56% to $385.73), Alphabet (-1.71% to $156.31), and Amazon (-1.33% to $179.59) from their previous closing prices.
Compounding Nvidia’s challenges, its daily stock chart recently formed a “death cross,” a technical pattern where the 50-day moving average falls below the 200-day moving average, often seen as a bearish indicator. The last occurrence in April 2022 preceded a nearly 50% drop in Nvidia’s stock price over the subsequent six months.
[Nvidia’s 1-day price chart has formed a death cross | Source: TradingView]
These developments have unsettled investors in AI-focused crypto projects. The performance of these tokens often correlates with Nvidia’s fortunes, largely because Nvidia’s hardware is fundamental to the AI infrastructure underpinning many blockchain-based AI initiatives. The reliance on powerful GPUs for training and running AI models creates this linkage.
Historical data supports this connection. For example, reports of a potential Chinese antitrust investigation into Nvidia in December led to a reported 14% drop in the AI crypto token market capitalization within 24 hours. Conversely, surges in NVDA stock have previously coincided with bullish trends for AI tokens.
Reflecting the latest Nvidia news, the total market capitalization of AI-related tokens decreased by 3.7% over the past 24 hours, settling near $20.1 billion. Check the latest Crypto Market Cap Trends Q2 2025. Trading volume also decreased, suggesting reduced market activity.
Leading AI crypto assets felt the impact. Near Protocol (NEAR), the largest by market cap, declined 5.3% in the last day. Other significant tokens such as Internet Computer (ICP), Render (RENDER), Sei (SEI), Virtuals Protocol (VIRTUAL), and Akash Network (AKT) registered losses ranging from 5% to 12%.