Chip stocks fall as Nvidia, AMD warn of China export control costs
Nvidia CEO Jensen Huang delivers the keynote for the Nvidia GPU Technology Conference at the SAP Center in San Jose, California, on March 18, 2025.
Brittany Hosea-small | Reuters
Technology stocks faced a decline on Wednesday, with Nvidia experiencing an 8% drop, as concerns over President Donald Trump’s tariff plans impacting demand and growth in the chipmaking sector emerged.
Nvidia’s recent filing indicated a $5.5 billion charge related to exporting its H20 graphics processing units to China and other countries, highlighting the need for a license to ship the chips to these destinations.
Similarly, Advanced Micro Devices mentioned in a filing that the latest export controls on its MI308 products could result in an $800 million impact.
Nvidia and AMD shares over the last month
Tech volatility
The tech sector experienced significant fluctuations following Trump’s tariff announcements, causing concerns about global trade wars and a possible recession.
Market volatility led to a decline in the value of megacap technology stocks, known as the “Magnificent Seven,” by over $1.8 trillion in just two trading days.
While some tech stocks have recovered from their lows, companies like Apple, Meta Platforms, Amazon, Nvidia, and Tesla have seen declines in their stock prices.
WATCH: Chip stocks fall as Nvidia, AMD warn of higher costs from China export controls
