Nvidia shares drop 6% in after hours trading after CEO Jensen Huang says US export controls on chips will cost $5.5 billion in fees

"Nvidia said on Tuesday that it will take a quarterly charge of about $5.5 billion tied to exporting H20 graphics processing units to China and other destinations. The U.S. government, during the Biden administration, restricted AI chip exports in 2022 and then updated the rules the following year to prevent the sale of more advanced AI processors."

Seems like Nvidia's new H20 graphics processing units will be subject to export fees, for all units being sent to China, and the company will have to deal with \~$5.5 billion in fees. Looks like CNBC is saying the after hours trading drop today is due to this - assuming this meant investors didn't expect them to be paying this?

[https://www.cnbc.com/2025/04/15/nvidia-says-it-will-record-5point5-billion-quarterly-charge-tied-to-h20-processors-exported-to-china.html](https://www.cnbc.com/2025/04/15/nvidia-says-it-will-record-5point5-billion-quarterly-charge-tied-to-h20-processors-exported-to-china.html)