Nvidia curbs and ASML warning spur global tech-stock rout
A bigger-than-expected drop in ASML’s bookings failed to alleviate concerns over a potential slowdown in AI demand
Technology stocks sank as new US government restrictions on the export of Nvidia chips to China and a disappointing report from ASML dimmed the outlook for the semiconductor sector, wiping out more than US$200 billion in market value for the two companies alone.
Nvidia fell 6.9 per cent after the chipmaker warned it will report around US$5.5 billion in related charges during the fiscal first quarter. Dutch chip-equipment maker ASML slid 7.1 per cent in US trading. The sell-off in semiconductor stocks over the past three months has already wiped out about US$2 trillion in market capitalisation.
President Donald Trump’s administration has barred Nvidia from selling its H20 chip in China, an escalation of Washington’s tech battle with Beijing. Advanced Micro Devices also said the export control applies to its MI308 products, and that it sees a change up to US$800 million on account. AMD fell 7.4 per cent.
ASML later added to investor anxiety by posting orders that missed expectations and saying that it does not know how to quantify the impact of recent tariff announcements.
“While ASML delivered on the revenue front, it has left investors disappointed at a time when uncertainty will punish such results,” said Ben Barringer, a technology analyst at Quilter Cheviot. Coupled with the latest export restrictions on Nvidia chips, “all of this just adds to the multitude of headaches facing tech CEOs right now, with no sign of the difficulty ending soon.”
A bigger-than-expected drop in ASML’s bookings failed to alleviate concerns over a potential slowdown in AI demand. Investor focus will now turn to results from key customer Taiwan Semiconductor Manufacturing Company on Thursday.