Nvidia CEO Jensen Huang delivers the keynote address during the Nvidia GTC 2025 at SAP Center on March 18, 2025 in San Jose, California.
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Nvidia said on Tuesday that it will take a quarterly charge of about $5.5 billion tied to exporting H20 graphics processing units to China and other destinations. The stock slid about 4% in extended trading.
On April 9, the U.S. government told Nvidia it would require a license to export the chips to China and a handful of other countries, the company said in a filing.
The H20 is an artificial intelligence chip for China that was designed to comply with U.S. export restrictions.
They generated an estimated $12 billion to $15 billion in 2024.CEO Jensen Huang said on the company’s last quarterly earnings call in February that revenue from China had dropped to half of pre-export control levels. That amounted to about $17 billion.
Nvidia’s H20 chip is comparable to the H100 and H200 AI chips used in the United States and other countries, but it has slower interconnection speeds, which allowed it to be exported to China.
Nvidia reports fiscal first-quarter results on May 28.
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