Nvidia Corporation NVDA Shares are sharply lower in premarket trading on Thursday.

The vulnerability follows a filing by the company late Wednesday that indicated the US government had told it of the need secure a license for exporting its powerful AI processors like the A100 and the yet to be released H100 chips to China. This would prevent these chips from being exported to China, one of its key markets.

Nvidia said its Q3 forecast included $400 million worth of such chips to be exported to China.

The GPU processor maker said it was in talks with the government to get exemptions for internal development and support activities, and its Chinese customers to include products that don’t fall under the new licensing norms.

rival Advanced Micro Devices, Inc. AMD is also affected by the development, according to a company spokesman told Reuters.

in the premarket According to it, Nvidia shares fell 5.73% to $142.29 and AMD shares fell 3.29% to $82.08 Benzinga Pro data.