Chipmakers Nvidia and AMD saw sharp drops in their share prices during after-hours trading on April 15, following a regulatory filing by Nvidia that revealed a massive $5.5 billion charge tied to new U.S. export restrictions on artificial intelligence chips to China.
Nvidia disclosed that U.S. officials had notified the company on April 9 that it now requires export licences for its H20 integrated circuits and any chips with similar bandwidth capabilities. The move directly affects Nvidia’s business with China, Hong Kong, and Macau.
“First quarter results are expected to include up to approximately $5.5 billion of charges associated with H20 products for inventory, purchase commitments, and related reserves,” the company said.
H20 Chip Caught in Crossfire of US-China Tech Tensions
The H20 chip is Nvidia’s most advanced AI chip previously allowed for export to China under earlier regulations. However, growing concerns from U.S. officials about the chip’s use in supercomputers—particularly in AI models developed by China-based startups like DeepSeek—have led to a policy shift.
According to Nvidia, the new licence requirement is designed to “address the risk that the covered products may be used in, or diverted to, a supercomputer in China.”
Just a day before the disclosure, Nvidia had announced plans to invest hundreds of millions of dollars over the next four years to manufacture some of its AI chips within the United States. Still, the move hasn’t calmed investor concerns. Nvidia’s fiscal Q1 2026 ends on April 27, and the market is bracing for its next earnings report amid the export pressure.
Stock Prices Tumble for Nvidia and AMD
Following the filing, Nvidia’s stock (NASDAQ: NVDA) dropped 6% to $105 in after-hours trading, according to Google Finance. The company’s shares are now down 22% year-to-date, weighed down by escalating U.S.–China trade tensions.
Advanced Micro Devices (NASDAQ: AMD) wasn’t spared either, falling over 7% to $88.55 after-hours. AMD’s shares have declined more than 25% since the start of 2025.
