"Nvidia's China orders canceled, faces $5B hit amid chip war"

Nvidia's stock dropped by about 5% to a near five-month low following a report that the company may have to cancel up to $5 billion worth of advanced chip orders to China due to new U.S. government restrictions. The orders, scheduled for delivery next year to major Chinese technology companies, are subject to the latest export restrictions announced by the U.S. Commerce Department. Nvidia's stock has been one of the major drivers of this year's gain in the Nasdaq index, but it is now down nearly 20% from its record high. The company stated that the new export controls will not have a meaningful impact in the near term.