By Sabela Ojea

Nvidia said that the Trump Administration is putting into effect restrictions on its exports to China and what are known as digital nations, together with an ultimate parent in these countries, that is expected to have a significant impact on its upcoming results.

The graphics-chip maker said that the U.S. Government on Monday informed it that it will implement a license requirement to export its AI H20 chips to China, and five digital nations--including Israel--that will be in effect for the indefinite future.

"The USG [U.S. Government] indicated that the license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China," Nvidia said Tuesday in a Securities and Exchange Commission filing.

Nvidia said that its first-quarter results for the three months ending April 27 are expected to include up to $5.5 billion of charges associated with its AI H20 chips for inventory, purchase commitments, and related reserves.

Nvidia said it first learned about Trump's intentions on April 9. Its announcement regarding the new trade restrictions come a day after it said that it plans to produce up to $500 billion of AI infrastructure in the U.S. within the next four years.

Shares fall 6% to $105.36 in post-market trading. The stock has fallen 16% year to date.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

April 15, 2025 18:05 ET (22:05 GMT)

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