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Nvidia’s CEO, Jensen Huang, presented the keynote at the Nvidia GPU Technology Conference held at the SAP Center in San Jose, California, on March 18, 2025.
Recent market fluctuations have seen technology stocks take a downturn, prominently marked by a notable 5% drop in Nvidia’s shares. This decline is attributed to concerns within the chipmaking industry regarding the potential impacts of President Donald Trump’s extensive tariff proposals, which could significantly dampen both demand and growth within the sector.
In a regulatory filing made public on Tuesday, Nvidia disclosed that it anticipates a substantial charge of $5.5 billion due to restrictions on exporting its H20 graphics processing units, primarily targeting markets in China and other regions. The company highlighted that forthcoming government regulations will necessitate a license for shipping these advanced chips to specified destinations.
Developed during President Joe Biden’s administration as a response to U.S. export limitations that restrict the sale of sophisticated AI processors, this chip is projected to generate revenues ranging from $12 billion to $15 billion in 2024. Concurrently, Advanced Micro Devices (AMD) announced in a separate filing on Wednesday that the latest export controls on its MI308 products may result in an estimated $800 million loss.
The challenges facing chip manufacturers have become evident in the wake of rigid trade restrictions imposed by the Trump administration, which have heightened fears that increasing tariffs could inhibit market demand. Nvidia’s and AMD’s latest reports serve as early indicators that the ongoing trade tension between the U.S. and China could deal a significant blow to the chip industry’s growth trajectory. Although some exemptions for electronic components, including semiconductors, have been extended, the administration has flagged the possibility of additional tariffs in the future.
Further complicating matters for the sector, Dutch semiconductor equipment manufacturer ASML reported disappointing order figures, indicating that tariff-related uncertainties are affecting market demand. This news sent ASML’s shares down approximately 5%.
The broader VanEck Semiconductor ETF index decreased by over 4%, with AMD shares plummeting more than 5%. Other key players in the industry, such as Micron Technology, Marvell Technology, and Broadcom, each saw their shares decline by about 2%. Equipment producers like Applied Materials and Lam Research experienced approximately 3% drops in their stock values.
The repercussions of these declines extended beyond the semiconductor sector, impacting the overall market and the tech-focused Nasdaq Composite, which fell nearly 2%. Major technology firms, including Meta Platforms, Alphabet, and Tesla, each recorded losses of about 2%, while Amazon, Microsoft, and Apple saw reductions of around 1% in their stock prices.
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