Nvidia and several other chipmakers experienced a drop in shares as the U.S. implemented stricter restrictions on the export of AI chips to China. The demand for AI products and services has fueled the growth of chip stocks over the past year. The new restrictions, which go beyond previous measures introduced by the Biden administration, prohibit the sale of certain Nvidia chips to China. These measures aim to control China’s access to computing power due to concerns over potential military uses. While Nvidia anticipates a long-term sales decrease, the immediate impact on the company’s financial performance is predicted to be minimal.