wooow....why could that be ???🤣

Nvidia falls due to billion-dollar charge

Nvidia (NASDAQ:NVDA) plummeted in pre-market trading after the AI favorite stated it would incur charges of $5.5 billion following the Department of Commerce's decision to limit exports of its H20 AI chip to its key market in China.

The H20 is the main AI chip that Nvidia is allowed to sell in China under the restrictions originally imposed by the Biden administration, as the United States sought to close off Beijing's access to cutting-edge advancements in AI technology.

Nvidia's announcement spooked other chip manufacturers and tech stocks, amid concerns over even more export restrictions to China, which is embroiled in a bitter trade war with Washington.

Other chip manufacturers and AI stocks, including Intel (NASDAQ:INTC), AMD (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO), fell after the announcement, while Nvidia's main supplier, TSMC (NYSE:TSM), also plunged.

The losses in chip manufacturers alarmed the tech sector as a whole, with major companies like Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) also down. Investors were also nervous about the impact of a trade war between the U.S. and China on tech supply chains, with an escalated conflict likely to announce more headwinds.