NVIDIA has filed an 8-K document with the U.S. Securities and Exchange Commission (SEC), reporting that the U.S. government has notified the company that exporting products to China requires a license. This includes the H20 chips specifically designed by the company for sale in China.
As a result of this directive, NVIDIA may incur additional expenses in its current quarter financials ending on April 27, totaling approximately $5.5 billion. This includes inventory write-downs, commitments to purchase inventory in advance, and other related expenses.
NVIDIA stated that this licensing requirement by the U.S. government is ongoing with no specified end date.
Source: The Wall Street Journal and NVIDIA
TLDR: NVIDIA reports to SEC about U.S. government’s licensing requirement for exporting products to China, potentially leading to significant financial implications for the company.
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