U.S. tech stocks took a hit after the Trump administration barred DeepSeeka fast?growing Chinese AI startupfrom accessing American technology, raising fresh concerns about just how much domestic chipmakers are exposed to the escalating U.S.China tech standoff. Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD) and Palantir (NASDAQ:PLTR) were among the hardest hit as investors tried to gauge what this latest move means for the future of high?end chip exports and AI momentum.
Nvidia was already grappling with tighter export rules, but the DeepSeek ban adds an entirely new layer of risk: reports suggest Nvidia may have sold as many as 60,000 advanced H20 chips to DeepSeek, potentially exposing it to up to $5.5 billion in at?risk revenue. AMD warned that similar restrictions could cost it roughly $800 million, while Palantir's stock slid amid a broader AI?sector selloff.
Even the Nasdaq Composite felt the shock, dropping more than 3% on the sessionan emphatic reminder that geopolitics can move markets just as powerfully as earnings. Looking ahead, many investors may pivot toward tech names with less China exposure or more robust domestic manufacturing footprints, viewing the DeepSeek news not as an outlier but as the latest signal that geopolitical risk has become a core consideration for the AI trade.
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