Nvidia's stock plummeted after announcing that new U.S. government restrictions on AI chip exports to China will cost the company $5.5 billion. The restrictions, impacting Nvidia's H20 chips and similar products, were imposed due to concerns about their potential use in Chinese supercomputers. Rival chipmaker AMD and Asian tech giants also experienced significant share declines. The move follows Senator Warren's urging for stricter export controls and comes amid growing concerns about China's AI development.

Prepared by Jonathan Pierce and reviewed by editorial team.