StoryRegulatory
NVIDIA expects $5.5B charge after US requires licences for H20 exports to China
NVIDIA disclosed a $5.5 billion charge in Q1 FY2026 after the US government mandated export licences for H20 chips to China and D5 countries, citing concerns of use in Chinese supercomputers. The charge covers inventory, purchase commitments and reserves on H20 products.
- US requirement: H20 exports to China and D5 countries now require government licence; effective April 14, 2025.
- Reason cited: risk of use in Chinese supercomputers; H20 was designed to comply with earlier export restrictions.
- Charge: approximately $5.5B write-down on H20 inventory, commitments and reserves in Q1 FY2026.