MW Nvidia's stock tumbles as it discloses $5.5 billion in charges due to China licensing rules
By Therese Poletti
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.
Nvidia's shares were down more than 5% in after-hours trading.
This is a developing story and will be updated.
-Therese Poletti
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April 15, 2025 17:58 ET (21:58 GMT)
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