Chipmaking giants Nvidia and AMD have seen their share prices slide in after-hours trading after Nvidia said US restrictions on artificial intelligence chips to China would cause it to face major costs.

Nvidia stated in an April 15 regulatory filing that it is expecting around $5.5 billion in charges associated with its AI chip inventory due to significant export restrictions imposed by the US government affecting the company’s business with China. 

Nvidia said that the US government informed it on April 9 that export licenses are now required for its popular H20 integrated circuits and any chips with similar bandwidth capacity.

“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 restrictions specifically mention China, Hong Kong and Macau, and the government indicated that the license requirement “addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China.” 

The H20 is the most advanced AI chip Nvidia can export to China under previous export rules. Government officials have been calling for stronger export controls on the chip, which was reportedly used to train models from China-based AI startup DeepSeek. 

The Trump administration initially put the restrictions on hold following President Donald Trump’s meeting with Nvidia CEO Jensen Huang earlier this month, NPR reported. 

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On April 14, Nvidia announced that it would spend hundreds of millions of dollars over the next four years manufacturing some AI chips in the US. 

However, that has not prevented the stock slump in light of the latest filing and predicted impact on its upcoming revenue report. “Truly no company is safe from tariffs,” commented the Kobeissi Letter. 

Nvidia’s first quarter of fiscal year 2026 ends on April 27.

Nvidia, AMD stocks slump after hours 

Shares in Nvidia (NVDA) fell 6% in after-hours trading on April 15 to $105, according to Google Finance.

Nvidia’s share price is down 22% so far this year, slumping in a wide market rout caused by Trump’s escalating trade war and tariff threats. 

NVDA price tanks in after-hours trading. Source: Google Finance

Rival chipmaker Advanced Micro Devices (AMD) saw a similar share price drop, falling more than 7% to $88.55 in after-hours trading. AMD shares have declined by more than 25% since Jan. 1. 

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