Nvidia is facing a substantial blow following the announcement of new export curbs on AI chips to China, with Morgan Stanley indicating a greater disruption than expected. The company estimates a hit of $5.5 billion due to these restrictions, leading to a sharp decline in its stock prices and causing a downward trend in U.S. tech stocks. Similarly, AMD has projected an $800 million loss as a result of the U.S. chip restrictions on China. As the trade war intensifies, companies like Intel are also adjusting to new requirements for exporting AI chips. The implications of these policies are being felt across the tech sector, with analysts warning of further challenges ahead as U.S. companies grapple with the fallout from these export regulations.