Nvidia expects up to $5.5 billion charge in first quarter

FILE PHOTO: Illustration shows NVIDIA logo

(Reuters) -Nvidia said on Tuesday its first-quarter results are expected to include up to about $5.5 billion in charges associated with its H20 products, sending its shares down 3.6% in extended trading.

H20 is the primary chip Nvidia is legally permitted to sell in China.

The charges are associated with H20 products for inventory, purchase commitments, and related reserves, the company said.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Alan Barona and Devika Syamnath)