Global chip stocks slide as Nvidia warns of big hit from U.S. export curbs

Reuters

Wed, Apr 16, 2025, 4:05 AM 2 min read

(Reuters) - Global spot stocks slumped connected Wednesday aft Washington curbed exports of an AI spot Nvidia had tailored for China, further cutting disconnected the important maturation marketplace for semiconductors successful a determination that volition outgo the AI pioneer $5.5 cardinal successful charges.

Nvidia said the charges it would incur is simply a effect of U.S. restricting the export of its H20 AI spot to China, on with AMD's MI308 and their equivalents.

The export curbs to China person successful caller years squeezed U.S. companies, but the state remains a important gross root with Nvidia drafting much than 13% of its sales, oregon immoderate $17 billion, from China successful its past fiscal year.

Meanwhile, ASML, the world's biggest supplier of machine chip-making equipment, cautioned that tariffs were adding to the uncertainty for its outlook for 2025 and 2026, sending its shares down implicit 4%.

"We are not amazed that determination are limits to H20...but the constraint determination is supply, truthful a much abrupt simplification successful H20 - and fixed the inventory writedown, a higher gross anticipation going guardant for H20 - volition apt beryllium disruptive to gross and earnings," Morgan Stanley analysts said.

Shares of Nvidia were down 5%, AMD dropped implicit 6%, portion Micron Technology, Broadcom and Intel fell betwixt 2% to 4% successful premarket trading.

Stacy Rasgon, a Bernstein analyst, said banning the H20 Chip 'makes nary sense' arsenic it would manus implicit the Chinese AI marketplace to rivals Huawei.

U.S. officials person been aiming to forestall the merchantability of captious spot to China successful an effort to support a competitory borderline successful the AI race.

"The interaction of a afloat H20 wipeout is astir apt (about)30 cents oregon truthful astatine existent levels (not tremendous successful the expansive strategy of things)," Rasgon said.

(Reporting by Joel Jose and Siddarth S successful Bengaluru; Editing by Arun Koyyur)