Shares of technology companies slid after a warning from one major artificial-intelligence firm about trade-war impact.
Nvidia said it's anticipating a charge of up to $5.5 billion tied to exporting its AI chips to China, according to a regulatory filing from the semiconductor company. Nvidia also disclosed the U.S. will now require a license for exporting the company's H20 processors to China and other countries.
Nvidia "now has massive blockades going after the China market in the middle of this raging US/China tariff battle," warned analysts at brokerage Wedbush, in a note to clients.
Among other chip makers who count China as a key market, shares of Qualcomm, AMD and Broadom slid.
The Nvidia restrictions will affect the AI specialist's "ecosystem" of suppliers and customers, warned Vivek Arya, an analyst at brokerage Bank of America Global Research.
Among those suppliers are semiconductor-production machine makers KLA and ASML Holding. Dutch firm ASML fell sharply after it posted orders below analysts' projections for the first quarter as chip makers held back spending on its semiconductor-making machinery, and warned that U.S. President Trump's unpredictable tariff policies were creating uncertainty for the industry.
The Nasdaq 100 is down 6.1% so far in April, compounding a 7.7% loss in March. The March loss was the worst monthly performance since 2022.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
April 16, 2025 17:21 ET (21:21 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。