Nvidia slumps on flagging $5.5 bln hit in Q1 related to H20 chip regulation

Shares of chipmaker Nvidia NVDA.O fall 6.3% to $105.17 in extended trading

Co says Q1 results are expected to include up to $5.5 billion in charges after the U.S. government said it would require licenses for exports of its H20 microchip to China

Co adds the charges are associated with H20 products for inventory, purchase commitments, and related reserves

Co says U.S. government informed it on April 9 that the H20 chip would require a license to be exported to China and on April 14 told Nvidia those rules would be in place indefinitely

NVDA's filing did not indicate how many, if any, of those licenses the U.S. government might grant

The H20 AI chip is one of NVDA's most popular chips

As of last close, stock down 16.5% YTD