
NVIDIA Corp (NASDAQ:NVDA) shares are moving lower in Tuesday’s after-hours session after the company said it was recently informed by the U.S. government that it will need a license to export chips to China.
What To Know: After market close on Tuesday, Nvidia said in a regulatory filing that the U.S. government contacted the company on April 9 to let it know it will need a license to sell H20 chips to China.
A license will also be required for any other circuits achieving the H20's memory bandwidth, interconnect bandwidth, or a combination thereof, Nvidia said in the filing.
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The U.S. government told Nvidia that the new license requirement addresses risks associated with the potential for China to use the products for a supercomputer. The license requirement will be in effect for the indefinite future.
As a result of the restrictions, Nvidia said it expects its first-quarter financial results to include up to $5.5 billion of charges associated with H20 products held in inventory, purchase commitments and related reserves. The company’s first quarter of fiscal 2026 is set to end on April 27, 2025.
The license requirement appears to be the latest in an intensifying trade war with China. President Donald Trump paused reciprocal tariffs for most countries last week, but ramped up tariffs on China. China slapped 125% retaliatory tariffs on American goods over the weekend.
NVDA Price Action: Nvidia shares were down 6.33% after hours, trading at $105.10 at the time of publication Tuesday, according to Benzinga Pro.
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