Nvidia to record $5.5 billion in charges due to U.S. export ban on its H20 chip

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, due to U.

S. export requirements now imposed on its H20 chips for the Chinese market. Nvidia .



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css-1y1y9ag-OverridedLink:any-link:hover svg{fill:var(--color-interactiveLink020, interactiveLink020);} NVDA said late Tuesday in a Securities and Exchange Commission filing that the U.S. government told the company it now requires an export license for it to sell its H20 chips to China, and that rule will be in place for the foreseeable future.

Analysts do not expect Nvidia to be granted such a license. The existing H20 chip was already designed to address the government’s security issues with the Chinese market..