Shares in Nvidia plunged on Wednesday after the computer chip giant said it would be hit by $5.5bn (£4.2bn) in costs due to the US government tightening its export rules to China.
The firm, which has been at the heart of the artificial intelligence (AI) boom, will require licences to export its H20 AI chip to China, which has been one of its most popular.
The rules come as part of an escalating trade war between the US and China, with both countries introducing steep trade tariffs on each other covering various goods.
Nvidia shares fell almost 7% on Wednesday. The Nasdaq exchange it is listed on ended the day down 3.1%.
The company announced on Tuesday that the US government had told it last week that the H20 chip required a permit to be sold to China, including Hong Kong.
The tech giant said federal officials had advised them the licence requirement “will be in effect for the indefinite future”.
“The [government] indicated that the…
