Nvidia is caught in the middle of an escalating trade war between the world’s two largest economies. Nvidia on Tuesday said 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,

The US is keen to maintain its sovereignty in the chip market by blocking China from access to NVIDIA’s state-of-the-art hardware.

President Donald Trump’s administration has barred Nvidia Corp. from selling its H20 chip in China, an escalation of Washington’s tech battle with Beijing that will cost the company