Technology stocks saw a sharp decline on Wednesday, led by a 7% drop in Nvidia shares, as mounting concerns over U.S. export restrictions and sweeping tariff policies threatened to undercut semiconductor demand. Nvidia disclosed in a recent filing that it expects to take a $5.5 billion charge in the first quarter due to halted exports of its H20 graphics processing units to China and other countries. The U.S. government has implemented new license requirements for shipping these chips, designed specifically to comply with earlier restrictions from the Biden administration that barred the export of advanced AI processors.
The H20 chips represented a significant portion of Nvidia’s revenue, with estimated sales of $12 to $15 billion in the previous year. The company’s warning was followed by a similar statement from Advanced Micro Devices, which revealed that it expects up to $800 million in charges from restrictions on its MI308 products. Both companies highlighted the potential for slowed growth due to tightened rules around exports to China, signaling broader industry impacts.
Adding to the pressure, Dutch semiconductor equipment manufacturer ASML reported weaker-than-expected orders, citing demand uncertainty tied to international trade barriers. The company’s stock fell 7%, pulling down other equipment makers like Applied Materials and Lam Research, which each declined around 5%.
The broader chipmaking sector followed suit, with the VanEck Semiconductor ETF down more than 4%. AMD dropped roughly 7%, while Micron Technology, Marvell Technology, and Broadcom all slipped over 2%. The selloff extended beyond semiconductors, dragging down the entire Nasdaq Composite by over 3%.
Major technology giants weren’t spared. Meta Platforms, Apple, Amazon, and Microsoft each fell about 3%, while Tesla dropped 5% and Alphabet lost over 2%. Hopes that President Trump’s return to office would bolster the tech sector have given way to market turbulence, as ongoing trade tensions raise fears of a global economic slowdown.
Since January, Nvidia, Apple, and Amazon have each lost around 20% of their value, while Tesla has dropped more than 40%. Recent policy volatility has triggered major swings in market capitalization, with the “Magnificent Seven” tech stocks shedding over $1.8 trillion in just two days. Despite a partial rebound, top tech names remain below recent highs, reflecting investor unease over continued policy shifts and international trade uncertainty.
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