Nvidia CEO Jensen Huang will give a keynote speech at the NVIDIA GPU Technology Conference held at the SAP Center in San Jose, California on March 18, 2025.
Brittany Hosea-Small |Reuters
Technology stocks fell on Wednesday, led by a 7% entry nvidiathe chip-making sector has shown that President Donald Trump’s drastic tariff plans could hamper semiconductor demand.
Nvidia revealed on Tuesday that it would require a $5.5 billion bill in the first quarter, linked to exporting H20 graphics processing units to China and other countries.
The NVIDIA chip is designed specifically for use in China to meet US export restrictions, except for the sale of advanced artificial intelligence processors during the administration of former President Joe Biden. The chip generated an estimated $12 billion to $15 billion in revenue last year. Advanced Micro Devices In a filing Wednesday, he reiterated similar concerns, saying it was expected to hit $800 million from the curb of the MI308 product.
Disclosures from Nvidia and AMD serve as the first major warning sign that Trump’s fierce battle with China can curb the growth of key elements utilised in the world’s biggest innovations. The administration has given several exemptions for electronic devices, including semiconductors, but warns that there could be other tariffs in the future.
In addition to the sour feelings, it was a disappointing print from a Dutch semiconductor device manufacturer. ASML. The company missed out on order expectations and said the tariff restrictions would create uncertainty in demand and reduce the stock by 7%. Equipment manufacturer Applied materials and Lamb Research Pity reduced by about 5%.
Chipmaking stocks have fallen across sectors Vaneck Semiconductor ETF More than 4% has decreased. AMD plummeted about 7% Micron Technology, Marvel Technology and Broadcom I slid more than 2% each.
This decline ripples over 3%, falling into the broader market and more technological Nasdaq composite. Meta platform, apple, Amazon, Microsoft Tesla fell 5%, falling about 3% each. alphabet I lost over 2%.
Nvidia and AMD will share last month
Technology Volatility
Investors hoped that President Trump’s new term in office would guide a period of strength in the technology sector. That hope sent top technical executives flocking to Washington to show support at post-election market rallying to new highs and show support on inauguration day.
However, tech stocks have recorded significant market capitalization losses since January, whipping up the threat of a global trade war and concerns about a recession have risen, sparking Trump’s tariff announcement. Every year, Nvidia, Apple and Amazon lost about a fifth of their value, while Tesla has dropped by more than 40%.
Ongoing tariff uncertainty and rapid policy changes have led to an expansion of volatility in the global market. Initially, the stock fell into the news, leading the “magnificent seven” stocks, dropping market value by more than $1.8 trillion in two days. The turbulence continued as Trump later announced a 90-day suspension with most mutual tariffs and sent Nasdaq composites to the second best session last week.
Technology stocks are bounced from low, but this month the MegaCups are sitting from high prices. Apple and Meta platforms fell by more than 12% in April, while Amazon and Tesla are blocking more than 8%. Nvidia has dropped by about 7%.
Monitoring: Chip stocks fall as nvidia, AMD warns higher costs from China’s export control
