Nvidia shares plunge amid $5.5bn hit over export rules to China

The chip manufacturing giant will require licences to export its H20 AI chip to China.

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

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

Nvidia shares were down 6.5% in early trading on Wednesday. The Nasdaq exchange it is listed on was down 2.3%.

The company announced on Tuesday that the US government had told it last week that the H20 chip required a permit to be sold to China, including Hong Kong.