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 disclosed Tuesday evening in an SEC filing that future sales of its H20 AI accelerators to China would require a license from the U.S. Department of Commerce. The licenses are unlikely to be forthcoming.