Nvidia stock price falls 6% after it projects $5.5 billion hit as US restricts H20 AI chips exports to China

Nvidia on Tuesday announced it expects a hit of $5.5 billion in its current fiscal quarter, following new US government restrictions on exports of its H20 artificial intelligence (AI) chips to China. Nvidia share price plunged 6.33% during after-hours trading.

In a filing with the US Securities and Exchange Commission (SEC), Nvidia said US officials had recently informed the company that it must obtain export licenses to sell its H20 chips to China because of concerns they may be used in supercomputers there.