Ad
In this article
- AMD
- NVDA
Follow your favorite stocksCREATE FREE ACCOUNTNvidia CEO Jensen Huang delivers the keynote for the Nvidia GPU Technology Conference at the SAP Center in San Jose, California, on March 18, 2025.Brittany Hosea-small | Reuters
Technology stocks declined Wednesday, led by a 6% drop in Nvidia, as the chipmaking sector signaled that President Donald Trump’s sweeping tariff plans could hamper demand and growth.
Nvidia revealed in a filing Tuesday that it will take a $5.5 billion charge tied to exporting its H20 graphics processing units to China and other countries and said the government will require a license to ship the chips there and other destinations.
The chip was designed specifically for China use during former President Joe Biden’s administration to meet U.S. export restrictions barring the sale of advanced artificial intelligence processors, which totaled an estimated $12 billion to $15 billion in revenue in 2024. Advanced Micro Devices said in a filing Wednesday that the latest export controls on its MI308 products could lead to an $800 million hit.
Read more CNBC tech news
- Nvidia says it will record $5.5 billion charge tied to H20 processors exported to China
- Figma confidentially files for IPO more than a year after ditching Adobe deal
- Amazon emails sellers to gauge how Trump’s tariffs are impacting their businesses
- HPE shares rise after activist Elliott Management takes $1.5 billion stake
- U.S.′ inability to replace rare earths supply from China poses a threat to its defense, warns CSIS
The disclosures from Nvidia and AMD are the first major signs that Trump’s fierce battle with China could significantly hamper chip growth. The administration has made some exemptions for electronics, including semiconductors, but has warned that separate tariffs could come down the road.
Adding to the sector worries was a disappointing print from Dutch semiconductor equipment maker ASML. The company missed order expectations and said tariff restrictions create demand uncertainty. Shares fell about 5%.
The VanEck Semiconductor ETF fell more than 3%, with AMD plunging more than 5%. Micron Technology, Marvell Technology and Broadcom sank about 2% each. Equipment makers Applied Materials and Lam Research fell about 3% each.
The declines spilled over into the broader market and tech-heavy Nasdaq Composite, which dropped nearly 2%. Meta Platforms, Alphabet and Tesla lost about 2% each. Amazon, Microsoft and Apple were last down about 1% each.
Nvidia and AMD shares over the last month
Tech volatility
Technology stocks have whipsawed in the wake of Trump’s tariff announcements, which sparked global trade war fears and recession concerns.
The market slumped in the initial aftermath of the sweeping policy plans, pushing megacap technology stocks dubbed the “Magnificent Seven” to shave off more than $1.8 trillion in market value over two trading days. Markets saw more wild turbulence as Trump later announced a 90-day pause on most reciprocal tariffs, sending the Nasdaq Composite to its second-best session ever last week.
Many technology stocks have bounced from their low, but Apple and Meta Platforms are down more than 10% each so far this month, while Amazon has slumped about 7%. Nvidia and Tesla are down more than 3% each.
WATCH: Chip stocks fall as Nvidia, AMD warn of higher costs from China export controls
Ad
