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.

Nvidia (NASDAQ:NVDA) received a notice from the U.S. government that it needs a special license to ship its H20 graphic processing units or related hardware to China, and such a license will be required indefinitely.