Shares in computer chip makers slumped early Wednesday after Nvidia said tighter U.S. government controls on exports of computer chips used for artificial intelligence will cost it an extra $5.5 billion.

Nvidia shares have fallen more than 5% in after-hours trading after the US said the chipmaker would require a licence to sell H20 chips to China. View on euronews

While the H20 has lower computing capabilities than other Nvidia chips, its ability to connect to memory chips and other computing chips at high speeds is still high. Those memory and connectivity aspects could make the H20 useful in building supercomputers in China,