Investing.com-- Major technology stocks and chipmakers declined on Tuesday evening after NVIDIA Corporation (NASDAQ: NVDA ) said it would incur a $5.5 billion charge in its fiscal first quarter due to new U.S. export restrictions on its H20 artificial intelligence chips to China.

The H20, designed specifically for the Chinese market, now requires an export license under U.S. regulations—a requirement expected to remain indefinitely, the U.S. government told Nvidia.

Nvidia shares plunged 6.5% in after-hours trading on Tuesday following the announcement.

Other major chipmakers were also affected. Advanced Micro Devices Inc (NASDAQ: AMD ) declined over 7%, Intel Corporation (NASDAQ: INTC ) fell 2%, and Broadcom Inc (NASDAQ: AVGO ) lost 3.5%.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (TSMC) (NYSE: TSM ) slipped 2%.

The export restrictions are part of ongoing U.S. efforts to limit China’s access to advanced semiconductor technology. Nvidia’s H20 chip, despite being a less powerful variant of its top AI chips, was tailored to comply with previous U.S. export controls. However, the new rules render existing inventory unsellable, prompting the substantial writedown.

Nvidia said the $5.5 billion charge is related to inventory, purchase commitments, and associated reserves for its H20 microchip products.

The broader tech sector also felt the impact, leading to a 1.5% decline in tech-heavy Nasdaq 100 Futures on Tuesday evening.

Shares of Apple (NASDAQ: AAPL ), Microsoft (NASDAQ: MSFT ), Alphabet (NASDAQ: GOOGL ), Amazon (NASDAQ: AMZN ), and Meta Platforms (NASDAQ: META ) all traded lower after the bell.