Nvidia Curbs and ASML Warning Spur Global Tech-Stock Rout

Bloomberg's Kunjan Sobhani and Ed Ludlow break down the Trump administration's new curbs on Nvidia chip and AMD exports to China and what it means for the future of the semiconductor industry.

Technology stocks sank as new US government restrictions on the export of Nvidia Corp. chips to China and a disappointing report from ASML Holding NV dimmed the outlook for the semiconductor sector, wiping out more than $180 billion in market value for the two companies alone.

Nvidia fell as much as 7.5% after the chipmaker warned it will report around $5.5 billion in related charges during the fiscal first quarter. Dutch chip-equipment maker ASML slid 5.9%. The selloff in semiconductor stocks over the past three months has already wiped out about $2 trillion in market capitalization.

President Donald Trump’s administration has barred Nvidia from selling its H20 chip in China, an escalation of Washington’s tech battle with Beijing. Advanced Micro Devices Inc. also said the export control applies to its MI308 products, and that it sees a change up to $800 million on account. AMD fell as much as 8.1%.

ASML later added to investor anxiety by posting orders that missed expectations and saying that it doesn’t know how to quantify the impact of recent tariff announcements.

“While ASML delivered on the revenue front, it has left investors disappointed at a time when uncertainty will punish such results,” said Ben Barringer, a technology analyst at Quilter Cheviot. Coupled with the latest export restrictions on Nvidia chips, “all of this just adds to the multitude of headaches facing tech CEOs right now, with no sign of the difficulty ending soon.”

The latest developments show how tariffs are already wreaking havoc on global companies. The Nasdaq 100 Index fell 1.3% on Wednesday, and the Philadelphia Stock Exchange Semiconductor Index dropped 3%.

Trump’s trade war is prompting economists to scale back their forecasts for GDP growth worldwide, casting doubt over the outlook for everything from smartphone demand to computing.

Even before Washington slapped additional tariffs on much of the world — only to roll them back shortly after — analysts had questioned whether big tech firms from Microsoft Corp. to Meta Platforms Inc. will continue to buy Nvidia chips at the same pace in 2025.

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