America’s third-largest company by market cap, said Wednesday it will take a $5.5 billion charge after the U.S. government moved to block exports of its H20 AI chips to China — citing national security risks tied to their potential use.

Nvidia (NVDA) and Advanced Micro Devices (NASDAQ:AMD) led chip stocks lower on Wednesday, amid U.S. AI chip export curbs aimed at China. On Tuesday, Nvidia (NVDA) said that it received a notice from the U.

This may be a “concession” from the Silicon Valley firm to get the White House to loosen further AI regulations, one analyst speculated.