US tech stocks experienced a significant plunge in the past couple days, primarily driven by fresh export restrictions on AI chips and escalating trade tensions under President Donald Trump’s administration. The Nasdaq Composite fell 1.8%, while the S&P 500 declined 0.9%, marking a sharp downturn as markets reacted to newly announced US tariff pressures.
In fact, semiconductor major Advanced Micro Devices (AMD) has revealed it anticipates an $800 million charge due to new US export controls requiring licenses for AI chip sales to China. These restrictions specifically impact AMD’s MI308 chips, which are integral to its AI product lineup. Even, AMD’s shares fell 6.1% today, closing at $89.51.
“On April 15, 2025, AMD completed its initial assessment of a new license requirement implemented by the United States government for the export of certain semiconductor products to China (including Hong Kong and Macau) and D:5 countries, or to companies headquartered or with an ultimate parent in such countries. The Export Control applies to the Company’s MI308 products. The Company expects to apply for licenses, but there is no assurance that licenses will be granted. The Company expects that the Export Control may result in charges of up to approximately $800 million in inventory, purchase commitments and related reserves,” the company’s filing with the SEC stated.
Meanwhile, another leading AI chipmaker, Nvidia, disclosed a projected $5.5 billion revenue loss originating from the indefinite licensing requirements imposed on its H20 chips. In response to these developments, Nvidia’s stock dropped 6.3%. Notably, these chips previously generated a significant portion of Nvidia’s $17 billion revenue from China last year.
Clearly, the new export restrictions are part of a broader strategy by the Trump administration to curb China’s technological trade and advancements. President Trump has also signaled the introduction of additional tariffs, including a 25% duty on imports from Mexico and Canada. Even today (on April 16), the White House has informed that China now faces tariffs of up to 245% on imports into the United States.
These measures have intensified investor concerns, leading to a widespread sell-off in the tech sector. Companies like Broadcom and Marvell Technology also saw their stocks decline by 6.3% and 19.8%, respectively. Also, Apple’s stock closed at $197.43, down 0.0233% from the previous close. Amazon’s stock also witnessed a decline of around 0.0174% and closed at $176.46.
Apparently, the consequences of the US export controls and tariff policies are being felt globally. Asian semiconductor firms, including Samsung, SK Hynix, and TSMC, also reported notable stock declines as investors reacted to the potential disruption in the global tech supply chain.
Content originally published on The Tech Media – Global technology news, latest gadget news and breaking tech news.
