Nvidia Corp.'s shares were tumbling in after-hours trading Tuesday, after the chip giant disclosed in a regulatory
filing that it expects to include charges of up to $5.5 billion in its fiscal first quarter related to licensing of its
chips to the Chinese market.
"On April 9, 2025, the U.S. government informed Nvidia that it requires a license for export to China(including
Hong Kong and Macau) ...Nvidia's H20 integrated circuits and any other circuits achieving the H20's memory bandwidth,
interconnect bandwidth, or combination thereof," Nvidia said in a regulatory filing.
Nvidia (NVDA) said the U.S. government informed the company on April 14th that the license requirement will be in
effect for the indefinite future. Nvidia's fiscal first quarter ends on April 27, and those results are expected to
include approximately $5.5 billion in charges associated with its H20 products for inventory, purchase commitments and
related reserves.
The H20 is a chip that Nvidia sells only in China to comply with performance restrictions.
