Nvidia Expects US$5.5 Billion Hit Amid Tightened Chip Export Rules

Computer chip giant Nvidia says it will be hit with 5-point-5 billion US dollars in costs after the US government tightened export rules to China.

According to the BBC, the firm, which has been at the heart of the artificial intelligence boom, will require licences to export its H20 AI chip to China, which has been one of its most popular.

The tech giant said federal officials had advised them the licence requirement will be in effect for the indefinite future.

The rules come amid an escalating trade war between the US and China, with both countries introducing steep trade tariffs on each other covering various goods.

Nvidia shares plunged almost six-percent in after-hours trading.