Nvidia and Advanced Micro Devices are the latest firms caught in the escalating trade war between the U.S. and China. Nvidia disclosed in an SEC filing Tuesday evening that future sales of its H20 AI accelerators to China would require a license from the U.

Nvidia stock sank after a surprise disclosure it would take a hit north of $5 billion following new chip export restrictions.

Nvidia shares tumbled in early Wednesday trading after the world's leading AI chipmaker was hit with new China export restrictions that could potentially impact billions in sales and add a new vulnerability to its near-term outlook.