Nvidia's shares plunged almost 7% in after-market trading, amid a broader slump in global markets as Trump's new ban intensifies a U.S.-China tech war.

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

Nvidia says it will take a $5.5 billion financial hit after Washington placed fresh restrictions on the export of its H20 artificial intelligence chips to China, in the latest escalation of a growing battle for AI dominance.

U.S. President Donald Trump administration plans to use ongoing tariff negotiations to pressure U.S. trading partners to limit their dealings with China, The Wall Street Journal reported on Tuesday citing people with knowledge of the conversations.