Nvidia said it would record a $5.5 billion charge on its quarterly earnings and disclosed that the U.S. will now require a license for exporting the company's H20 processors to China and other countries.

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.