Nvidia and major chipmakers slump on the stock market – after new China restrictions revealed

News Snapshot:

Stocks in leading AI chipmakers have slumped after firms said new restrictions on exports to China would cost them billions. Nvidia fell 6.87% - and was at one point down 10% - after revealing it would now need a US government licence to sell its H20 chip. The bespoke China chip is already deliberately less powerful than products sold elsewhere after intervention from the previous Biden administration. However, the Trump government is worried the H20 and others could still be used to build a supercomputer in China, threatening national security and US dominance in AI. Nvidia said the move would...