Nvidia hit with $5.5 bn charge as US clamps down on China chip exports

Nvidia announced on Tuesday that it expects to incur a quarterly charge of approximately $5.5 billion due to constraints on exporting its H20 graphics processing units to China and select other regions. Following the announcement, the company’s shares declined over 6 per cent in after-hours trading.

According to a regulatory filing, the US government informed Nvidia on April 9 that the company must obtain a licence to ship its H20 chips to China and several additional countries.