Nvidia Expects $5.5B Charge Amid Export Restrictions

Nvidia has announced that it expects to record up to $5.5 billion in charges for its first-quarter results due to new U.S. export restrictions on its H20 chips to China, including Hong Kong and Macau. The U.S. government mandated that licenses are now required for these exports, aiming to prevent the chips' potential use in Chinese supercomputers. This has caused Nvidia's shares to fall over 6% in after-hours trading. The licensing requirement, communicated to Nvidia on April 9, 2025, will remain indefinitely. The H20 chip was designed to comply with previous U.S. export controls and has been a popular product in China due to restrictions on more advanced chips. Nvidia's financial health remains strong despite these challenges, as highlighted by a solid current ratio and significant revenue growth.