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Chipmakers report stock declines following US export restrictions

Nvidia and AMD face significant losses due to new export licensing rules for China.

April 16, 2025 at 10:11 PM

Nvidia and major chipmakers slump on the stock market - after new China restrictions revealed

New US restrictions on chip exports to China lead to significant stock declines for major AI manufacturers.

Chipmakers face stock market decline amid new export restrictions

Stocks of leading AI chipmakers have fallen sharply after the US government announced new export restrictions to China. Nvidia saw a drop of approximately 6.87%, even hitting a 10% low during the day, due to the requirement for a US government license to sell its new H20 chip. Rival AMD and Dutch firm ASML also reported losses linked to the new licensing practices. These measures are tied to concerns about national security and competition with China in AI technology. The resulting losses contributed to a decline in tech-heavy stock indices, with the Nasdaq down 3% and the S&P 500 falling 2.2%.

Key Takeaways

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Nvidia and AMD report significant stock losses due to new export regulations.

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US trade policies aim to safeguard national security but may harm chip manufacturing.

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Investors worry about the economic impact of rising tariffs and potential recession.

"The level of the tariff increases announced so far is significantly larger than anticipated."

This statement reflects concerns from federal officials about the broad economic impact of tariffs.

"Trade negotiations could determine the future of chip manufacturing in the US."

This highlights the uncertain future of the tech industry amid escalating trade conflicts.

The significant drop in stock prices signals potential challenges for the US chip industry amid ongoing tensions with China. With Nvidia's projected losses reaching $5.5 billion, concerns are mounting over national security and the future of AI development in both countries. The trade climate remains uncertain; as the US government’s licensing system takes shape, investors will be closely watching its impacts on innovation and market stability.