Chip Giants Rocked by Trump's China Export Curbs, Brace for Billions in Losses
Summary
Chip giants like Nvidia, AMD, and ASML face billions in losses after Trump's export curbs on selling advanced chips to China, with Nvidia bracing for a $5.5 billion charge, AMD up to $800 million hit, and ASML citing demand uncertainty due to tariff restrictions.
Key Points
- Chip stocks plunged as Nvidia and AMD warned of higher costs from President Trump's export controls on selling advanced chips to China.
- Nvidia expects a $5.5 billion charge related to exporting its H20 chips to China, while AMD forecasts up to $800 million hit from curbs on its MI308 products.
- Dutch semiconductor equipment maker ASML missed order expectations and cited demand uncertainty due to tariff restrictions, adding to the sector's woes.