The restrictions are the first major limits the Trump administration has put on semiconductor sales outside the United States, toughening rules created by the Biden administration.

Nvidia on Tuesday notified regulators that it expects a $5.5 billion hit this quarter due to a new US licensing requirement on the primary chip it can legally sell in China.

Nvidia said the Trump Administration was restricting the sale of H20 chips to China to help prevent Beijing developing its own supercomputer.

Shares in Nvidia slumped in after-hours trading late Tuesday after it said that tighter U.S. government controls on its exports of computer chips used for artificial intelligence will cost it an extra $5.

Nvidia stock continued its slide on Thursday bringing market cap losses since it disclosed new export controls to more than $250 billion.

Just when it seemed that Nvidia (NVDA) was recovering after having momentarily fallen below $90, President Donald Trump announced a ban on the exports of the company’s H20 chips to China. The Jensen Huang-led company designed these chips for China after former President Joe Biden restricted exports of high-power artificial intelligence (AI) chips