Nvidia Stock Plummets After China AI Chip Ban

Nvidia has experienced a significant financial hit, facing a $5.5 billion loss due to the U.S.’s ban on exporting its AI chips to China. This decision by the U.S. government has rattled the tech sector and triggered fears of a broader trade war impacting both global markets and cryptocurrencies. The chipmaker announced it expects a $5.5 billion charge in the first quarter of fiscal year 2026, attributed to unsold AI chips intended for the Chinese market. The ban on these powerful processors is aimed at curbing their potential use in military and surveillance technologies.