Posted on 04/16/2025 10:14:42 AM PDT by Miami Rebel
Technology stocks declined Wednesday, led by a 7% drop in Nvidia, as the chipmaking sector signaled that President Donald Trump’s sweeping tariff plans could hamper demand and growth.
Nvidia revealed in a filing Tuesday that it will take a $5.5 billion charge tied to exporting its H20 graphics processing units to China and other countries and said the government will require a license to ship the chips there and other destinations.
Technology stocks have whipsawed in the wake of Trump’s tariff announcements, which sparked global trade war fears and recession concerns.
The market slumped in the initial aftermath of the sweeping policy plans, pushing megacap technology stocks dubbed the “Magnificent Seven” to shave off more than $1.8 trillion in market value over two trading days. Markets saw more wild turbulence as Trump later announced a 90-day pause on most reciprocal tariffs, sending the Nasdaq Composite to its second-best session ever last week.
Many technology stocks have bounced from their low, but Apple and Meta Platforms are down more than 10% each so far this month, while Amazon has slumped about 7%. Nvidia and Tesla are down more than 3% each.
The chip was designed specifically for China use during former President Joe Biden’s administration to meet U.S. export restrictions barring the sale of advanced artificial intelligence processors, which totaled an estimated $12 billion to $15 billion in revenue in 2024. Advanced Micro Devices said in a filing Wednesday that the latest export controls on its MI308 products could lead to an $800 million hit.
The disclosures from Nvidia and AMD are the first major signs that Trump’s fierce battle with China could significantly hamper chip growth. The administration has made some exemptions for electronics, including semiconductors, but has warned that separate tariffs could come down the road.
Adding to the sector worries was a disappointing print from Dutch semiconductor equipment maker ASML. The company missed order expectations and said tariff restrictions create demand uncertainty. Shares fell about 5%.
The VanEck Semiconductor ETF fell more than 4%, with AMD plunging more than 6%. Micron Technology, Marvell Technology and Broadcom slipped about 2% each. Equipment makers Applied Materials and Lam Research fell about 3% each.
The declines spilled over into the broader market and tech-heavy Nasdaq Composite, which dropped nearly 2%. Meta Platforms, Alphabet and Tesla lost about 2% each. Amazon, Microsoft and Apple were last down about 1% each.
Nvidia is either an American company, or it’s not.
It’s an American company.
Tech stocks appear to be the first ones to tremble every day the market opens they are always iffy.
Tech stocks appear to be the first ones to tremble every day the market opens they are always iffy.
****************
They will continue to be iffy, because their run up in valuations over the last 12 to 18 months isn’t based on anything substantial.
Pure hype & speculation, plus the usual index fund investors buying in no matter the fundamentals.
Index fund investing is not problematic in itself, but does tend to have a blind spot in propping up businesses that would otherwise take a haircut.
Pure hype & speculation
Agree it’s like the guy at the horse races I got a winner for ya.
AMD today: 88.29 -7.00 (-7.35%)
AMD use to be about $211 back in March 2024 and has fallen from there to a low of about $78 last April 8th.
Nvidia split 10 to 1 in June 2024 to $120 and I was expecting it to go up from there but it only got to about $143 and is now at $104.49
The stocks have been on a downward trend for the most part for a year +.
I am hoping AMD falls even more so I can buy more of it back and get rich when the economy improves.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.