The Nvidia Corporation has announced that new restrictions on the export of semiconductors to China will result in a $5.5 billion exceptional charge in the first quarter of its fiscal year.
According to a document filed with the US Securities and Exchange Commission (SEC), the company has been informed by the Trump administration that it must now obtain a licence to export certain artificial intelligence (AI) chips to China and other countries.
Nvidia said it will take a $5.5 billion charge against its revenue in the current quarter because of chip inventory, purchase commitments and related reserves that it will not be able to sell or fulfill following the announcement of the new regulation by the government.
Following the announcement, Nvidia’s share price fell more than 5% in after-hours trading on the New York Stock Exchange.
