Shares of leading AI chip companies, such as Nvidia and AMD, experienced a sharp decline after the U.S. government imposed new export restrictions on AI chips to China. This move will impact Nvidia significantly as they are set to take a $5.5 billion financial hit in their first fiscal quarter due to the ban, which effectively prevents sales of the H20 chip in one of its key and fast-growing markets. 
The broader semiconductor sector also suffered losses, with AMD, Micron Technology, Broadcom, and ASML experiencing notable price drops. 
The decline in these companies’ values marks a $2 trillion market value loss for the industry over the past three months due to escalating trade conflicts and regulatory uncertainties. 
China, aware of the restrictions, has stated they will face tariffs of up to 245%. However, China claims to be prepared for this