Nvidia projects associated expenses of $5.5 billion during its first fiscal quarter of 2026, concluding on April 27, leading to an approximate 6% decline in the company's stock price in after-hours trading.

The H20 chip represents Nvidia's most sophisticated AI offering permitted for export to China under existing and former U.S. trade regulations.

Interestingly, following this, Nvidia declared on Monday its intention to invest substantial sums over the next four years in the domestic production of specific AI chips, a commitment that analysts noted lacked specific information.

Many government officials wanted stronger rules on sending the H20 chip to other countries. This is because people said the chip was used to train AI models by a Chinese company called DeepSeek. One of these models, the R1 'reasoning' model, caused big problems in the U.S. AI market in January.

Nvidia opted to refrain from offering any commentary.