Nvidia's H20 was the most advanced AI chip the company could still export to China. Now, it faces restrictions.

Nvidia Corp.’s shares were tumbling in after-hours trading Tuesday, after the chip giant disclosed in a regulatory filing that it expects to include charges of up to $5.5 billion in its fiscal first quarter related to licensing of its chips to the Chinese market.

According to an SEC filing from NVIDIA, the US government now requires companies to obtain a license to export H20 integrated circuits and any other products that achieve the same performance benchmarks.