Nvidia’s stock price plummeted after the chip giant revealed it faces a staggering $5.5 billion blow due to tightened U.S. export rules targeting China. The restrictions, part of an escalating tech and trade battle between the U.S. and China, require Nvidia to obtain licenses for exporting its sought-after H20 AI chip to China, a key market. Shares plunged 6.5% as the Nasdaq took a hit. Nvidia stated the U.S. government flagged concerns about potential misuse of the chips in Chinese supercomputers. While a significant sum, analysts suggest Nvidia can weather the storm and speculate on potential future adjustments to trade policies. Experts anticipate a potential decoupling of US and China AI semiconductor supply chains. This move underscores the intensifying competition for tech dominance and the increasing importance of AI chips in the US-China power struggle, as the US aims to bolster its chip manufacturing capabilities.