After the U.S. put new limits on China's exports, Nvidia and other chip stocks went down.

Nvidia and other chip stocks all went down on Tuesday after the U.S. announced new restrictions meant to make it harder for China to get advanced AI chips and cutting-edge equipment for making semiconductors.


The U.S. Department of Commerce announced new export restrictions that made it harder to get advanced AI chips. The limits also included extra safety measures, like needing more licenses for shipping to over 40 countries to stop them from selling them to China again.


The new rules hurt Nvidia the most because it had been the market leader in AI chips. Its market value dropped more than $53 billion as its shares fell almost 5% on Tuesday.


The United States put limits on the sale of the first AI chips in October 2022. In response, Nvidia made the A800 and H800 as options to its popular A100 and H100 AI processors for the Chinese market. But the China-edition chips will not work with the rules that were released on Tuesday.


"Given the demand worldwide for our products, we don't expect a near-term meaningful impact on our financial results," Nvidia stated in a statement.