NVIDIA takes a Charge for H20 AI Chips exported to China

Nvidia shares were down about 6% in after-market trading.

The H20 is one of those chips. Chinese companies including Tencent, Alibaba and TikTok-parent ByteDance had been ramping up orders for H20 chips due to booming demand for low-cost AI models from startup DeepSeek, Reuters reported in February.

Nvidia said on Tuesday that the U.S. government informed it on April 9 that the H20 chip would require a license to be exported to China and on April 14 told Nvidia those rules would be in place indefinitely.