Nvidia, AMD Sound the Alarm Over Costly Export Curbs as Washington’s Trade Battle Escalates
A chilling wave swept through tech markets Wednesday after major chipmakers warned that mounting costs tied to new China export restrictions could sting harder—and last longer—than anyone hoped.
Nvidia and AMD, two of Silicon Valley’s biggest semiconductor stars, told investors to brace for major charges tied to the Trump administration’s revived tariff strategy. And Wall Street wasted no time reacting.
$5.5 Billion Gut Punch from Nvidia Sends Shockwaves
In a new regulatory filing, the company disclosed it would take a $5.5 billion charge related to its H20 graphics processors—chips tailored for the Chinese market under Biden-era guidelines. Now, with Trump back in the White House, those same chips are caught in a fresh snarl of trade controls.
One sentence in the filing stood out: licenses will now be required to export H20s not only to China, but possibly to other countries as well.
Nvidia’s stock tumbled more than 7% during the trading day. The company shed tens of billions in market cap in hours. Investors had seen these processors as a clever workaround. Now, they’re expensive paperweights without a greenlight from Washington.
“We designed those chips to stay within the letter of the law,” one executive said privately. “Now the rules have changed again.”
AMD Joins the Chorus With Its Own Warning
Advanced Micro Devices didn’t sugarcoat things either.
The company said it expects to take up to an $800 million hit related to its MI308 products. Like Nvidia, AMD had developed AI-capable chips for the Chinese market—hoping to capture demand while staying on the right side of export laws.
Now? That demand has nowhere to go.
Here’s where things stand, according to AMD’s new guidance:
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Estimated impact: $600 million to $800 million in 2025
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Impacted products: MI308 data center chips
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Main driver: Export licenses and regulatory delays
Shares of AMD cratered more than 7% by market close. Traders were clearly spooked, and for good reason.
“We’re stuck in purgatory,” one chip analyst said. “They can’t sell to China, and they can’t pivot fast enough elsewhere.”
ASML Throws More Cold Water on the Market
It wasn’t just American chipmakers sounding the alarm.
ASML, the Dutch company that makes the machines used to print the world’s most advanced semiconductors, missed order expectations and issued its own warning about growing trade risks.
The company’s CFO said in a statement that tariff restrictions are creating “real uncertainty” for future demand, especially as supply chains struggle to adapt. ASML shares sank 7% on the news.
That dragged down other equipment makers like Applied Materials and Lam Research, which fell roughly 5% each.
Even worse, there’s no clear end in sight.
Industry-Wide Selloff Hammers Nasdaq
By midday, the pain had spread far beyond the chip sector.
The VanEck Semiconductor ETF, which tracks chip stocks, plunged over 4%. Major players like Micron, Marvell, and Broadcom all dropped between 2% and 3%. The message? No one’s safe from fallout.
But it wasn’t just semiconductors. The selloff bled into big tech. Here’s a snapshot of how some of the biggest names closed:
| Company | Change % |
|---|---|
| Meta Platforms | -3.2% |
| Apple | -3.0% |
| Amazon | -2.9% |
| Microsoft | -3.1% |
| Tesla | -5.0% |
| Alphabet | -2.4% |
Even tech giants that don’t rely directly on GPU exports took damage, simply because uncertainty in the semiconductor supply chain creates knock-on effects throughout the ecosystem.
One fund manager summed it up bluntly: “If chips freeze, the rest of tech catches a cold.”
Why the Tariff Drama Is Just Getting Started
President Trump’s new trade playbook appears to be as aggressive as ever.
Despite carving out temporary exemptions for some electronic components—including certain semiconductors—the administration has hinted that those carve-outs could evaporate overnight. Officials have floated “national security” as the rationale, which gives them broad legal leeway.
“Everything’s on the table,” said one White House advisor. “We’re reviewing every single category of tech exports.”
That’s not the kind of comment Wall Street likes to hear.
Meanwhile, companies are scrambling behind the scenes. Multiple chipmakers are reportedly seeking expedited license reviews from the Commerce Department. But as of now, there’s no set timeline for approval.
Some insiders fear delays could stretch into late 2025.
Uncertainty Is the Only Constant for Investors
For investors, there’s no easy playbook. On the one hand, AI and semiconductors remain red-hot long-term bets. On the other, regulatory volatility has injected a level of unpredictability that’s difficult to hedge.
“You can’t build a five-year growth model when Washington is moving the goalposts every six months,” said a frustrated tech fund analyst.
And let’s not forget the geopolitical backdrop. China, facing its own economic headwinds, has already vowed retaliation. Any escalation could deepen the rift and make recovery slower.
One hedge fund trader didn’t mince words: “Right now, holding chip stocks feels like holding a lit firecracker. You just don’t know when it’s gonna blow.”
