NVIDIA plummeted 6% after hours as the U.S. government requires a license to export H20 chips to China

Changwan Information learned that, according to an SEC announcement, Nvidia has received notification from the U.S. government stating that it needs to obtain special permission to ship its H20 chips or related hardware to China, and that such permission will be required indefinitely.

SEC Original Text

According to the 8-K Form submitted by Nvidia to the U.S. Securities and Exchange Commission, due to this development, Nvidia expects to incur a charge of $5.5 billion in its upcoming quarterly financial results.

The report states: "On April 9, 2025, the U.S. government (referred to as USG) notified NVIDIA that USG requires the company’s H20 integrated circuits and any other circuits that achieve H20 memory bandwidth, interconnect bandwidth, or a combination thereof, to obtain permission before exporting to China (including Hong Kong and Macau) and D:5 countries, or companies headquartered or ultimately owned by companies in those countries." "USG stated that this licensing requirement is intended to address the risk that the relevant products may be used or re-exported for Chinese supercomputers. On April 14, 2025, USG notified the company that this licensing requirement will be effective indefinitely."

Nvidia stated in the filing: "The first quarter results are expected to include approximately $5.5 billion in inventory, procurement commitments, and related reserve charges associated with H20 products."

As a result, Nvidia's stock price fell 6% during after-hours trading.

Market data source: Longport

Nvidia declined to comment on the matter.

Although Nvidia's more advanced AI GPUs have been banned from export to China, the H20 chip was specifically designed to comply with export restrictions.

The H20 is currently Nvidia's most advanced chip that is still permitted for export to China. However, industry observers and Chinese tech companies had previously anticipated that the H20 would be included in other banned hardware lists. Last week, there were reports that the Trump administration had suspended the ban on exporting Nvidia H20 GPUs to ChinaAccording to reports, before the potential ban on the sale of artificial intelligence chips in China by the United States, Alibaba (BABA), Tencent (TCEHY), and ByteDance (BDNCE) placed orders for at least 16 billion dollars for Nvidia's H20 server chips in the first three months of 2025.

In the early hours of Tuesday Eastern Time, U.S. President Donald Trump posted on Truth Social that NVIDIA has committed to investing 500 billion dollars to build supercomputers in the United States.

"This is very significant and exciting news," he said. "All necessary permits will be expedited and quickly delivered to NVIDIA, just like all companies committed to participating in America's golden age!"

Compiled from the internet and SEC