Chips Melt Under the Weight of Tariffs, Sharp Decline in Tech Markets After Trump’s Restrictions

Chips Melt Under the Weight of Tariffs, Sharp Decline in Tech Markets After Trump’s Restrictions

Global chip stocks saw a sharp decline on Wednesday, April 16, 2025, after NVIDIA warned of a potential loss of up to $5.5 billion due to U.S. export restrictions on its H20 artificial intelligence chip, which was designed for China. This warning came at a sensitive time, as trade tensions between the world’s largest economies flared, leading to a decline in confidence in the tech market

The H20 chip, developed by NVIDIA, was a key player in the technological revolution. However, the U.S. restrictions on its export to China have had a profound impact on the markets. As news broke, NVIDIA's stock dropped by 5%, and its competitors, such as AMD, saw a similar decline of 6.5%. Stocks of other companies, including "Broadcom," "Intel," and "Micron," also suffered losses, affected by the same turbulent winds from the escalating trade tensions

But the question remains: how can technology climb out of this crisis and return to the sky after the storms

Projections suggest that these restrictions may be temporary, but they will leave a lasting impact on the development of the AI market in China and globally

Amid this complex scenario, ASML, the largest supplier of semiconductor manufacturing equipment, warned that tariffs would exacerbate market uncertainty, affecting its stock, which fell by 4%, as markets struggle to breathe amid growing disruptions

Amid the numbers, hope still looms on the horizon, as some expect the tech sector to recover quickly