Nvidia, AMD and other chipmakers stand to lose billions over President Trump’s trade policies.
Transcript:
Some of the world’s biggest tech companies are starting to feel the effects of President Trump’s trade policies — and they’re expensive. Chipmakers in particular are getting hit hard, with shares of Nvidia and AMD both dropping more than 6% in premarket trading on April 16.
AI-chip related stocks Arm, Broadcom, Marvell Technology, and Micron all saw significant dips as well.
Nvidia revealed it will incur a $5.5 billion charge this quarter alone for exporting some of its products to China, as well as other countries. China was responsible for 13% of Nvidia’s sales in 2024, which comes out to roughly $17 billion. The country is Nvidia’s fourth-largest region by sales.
Meanwhile, AMD revealed it would be hit with an $800 million bill thanks to the policies.
The selloff of U.S. stocks had a ripple effect on global markets – with South Korea’s Samsung dropping about 3% and European chipmakers ASM International and Infineon Technologies fell close to 2%
That’ll do it for your daily briefing. From New York City, I’m Loren Torres with TheStreet.
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