Nvidia, a world leader in artificial intelligence, fell over 7% in premarket trading on Wednesday morning after news emerged that the company expects a $5.5 billion loss due to new US tariff restrictions.

Earlier, a US Securities and Exchange Commission (SEC) filing showed that the estimate was based on the expected effects of Washington's previous decision to restrict the sale of high-end US chips to China, including the H20.

Nividia's shares dropped by 7.08% to $112.20 at 4:10 am ET.