Chipmaker Nvidia has warned that tighter US government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion (€4.8bn) in the quarter to 27 April.
In a regulatory filing released late on Tuesday, it said it would require a licence to sell H20 chips to China "for the indefinite future".
It added that the controls addressed risks that the products “may be used in or diverted to, a supercomputer in China".
The emergence of China's DeepSeek AI chatbot in January renewed concerns over how China might use the advanced chips to help develop its own AI capabilities.
Nvidia first created the H20 chips to comply with current export restrictions after the Biden administration curbed sales of top AI chips to China. H20 products are less powerful than GPU chips.
Nvidia's shares fell 5.2% in after-hours trading, while shares in rival chipmaker AMD dropped around 5.9% after markets closed.
Asian technology giants also saw big declines. Testing equipment maker Advantest's shares fell 6.6% in Tokyo, Disco Corp. lost 8% and Taiwan's TSMC dropped 2.5%.
Wednesday's announcement comes after Nvidia said on Monday that it would produce its artificial intelligence super computers in the United States for the first time.
Nvidia said it had commissioned more than one million square feet of manufacturing space to build and test its specialised Blackwell chips in Arizona and AI supercomputers in Texas — part of an investment the company said will produce up to half a trillion dollars of AI infrastructure in the next four years.
The decision followed President Donald Trump's assertion that tariff exemptions on electronics like smartphones and laptops were only a temporary reprieve, until officials develop a new tariff approach specific to the semiconductor industry.
Trump has already placed tariffs of 145% on Chinese imports, although some electronics are temporarily exempt.
