Fresh indications of how US President Donald Trump’s changing trade policies were complicated the future for semiconductor and computer titans, including AI pioneer Nvidia and its rival AMD, sent global chip stocks plunging on Wednesday.
As Dutch chip-making giant ASML expressed concerns about its future and Nvidia threatened a $5.5 billion blow after Washington limited shipments of its AI processor designed for China, efforts to reorder global commerce through tariffs and export bans have begun to show their effects.
After a two-year surge, the AI chip trade is losing pace due to tariff threats and concerns about Big Tech’s investment. The most recent setback was the US limitation, which also affected Advanced Micro Devices’ MI308 processor.
Nvidia’s stock dropped about 6%, and the company’s market worth is expected to fall by around $148 billion. As it warned of a $800 million blow from the newest restriction, AMD plunged 5.8%, while stocks of chips connected to AI, such as Arm, Broadcom, and Micron, plummeted 2.5% to 4.6%.
Michael Ashley Schulman, chief investment officer at Running Point Capital, states, “the US export restrictions on Nvidia’s H20 chips highlight the growing geopolitical uncertainty enveloping the tech and semiconductor sectors, particularly under Trump-era policy reversals.
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