Chip stocks update: Nvidia, AMD, TSMC, Intel share prices fall after Trump’s export license demand

Key Takeaways:

• Nvidia announces a $5.5 billion charge due to new U.S. export license requirements on its H20 chips.
• The U.S. government now requires export licenses for Nvidia’s H20 chips to China and other D:5 countries.
• Nvidia’s stock drops nearly 6%, with other chipmakers also seeing declines.
• ASML reports weaker orders and warns that Trump’s policies create industry uncertainty.
• Semiconductor stocks have been declining in 2025, exacerbated by tariff policies and export rules.

Nvidia’s $5.5 Billion Charge

Nvidia Corporation has revealed it will record a $5.5 billion charge this year related to its H20 chips, following new export license requirements imposed by the Trump administration. The announcement has sent shockwaves through the tech industry, highlighting the tangible impacts of evolving U.S. trade policies on American companies.

In a Form 8-K filing with the U.S. Securities and Exchange Commission dated April 9, Nvidia disclosed that the U.S. government now requires the company to obtain an export license to ship its H20 chips to China and select other nations. “The license requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China,” the filing stated.

Stricter Export Controls

The new export license requirement applies not only to China, including Hong Kong and Macau, but also to a group of nations designated as “D:5 countries.” According to the United States Department of Commerce’s Bureau of Industry and Security, these include countries like Afghanistan, Iran, Russia, and Venezuela. On April 14, the U.S. government indicated that this requirement would “be in effect for the indefinite future,” signaling a long-term shift in export policy.

Nvidia’s H20 chip was specifically designed for the Chinese market to comply with earlier U.S. export restrictions. In 2024, the company earned between $12 billion and $15 billion from H20 sales. The sudden imposition of new restrictions threatens this revenue stream, with the $5.5 billion charge reflecting the anticipated financial impact.

Market Reaction and Industry Impact

The news has shaken investor confidence, leading to a significant downturn in semiconductor stocks. Nvidia’s shares dropped nearly 6% in premarket trading, falling around $6.45 to $105.75. The decline wasn’t isolated; other chipmakers experienced similar fates:

• Advanced Micro Devices, Inc. (AMD) : down 7%
• Taiwan Semiconductor Manufacturing Company Limited (TSMC) : down 3%
• Intel Corporation : down 2.7%
• Broadcom Inc. : down 4%
• Micron Technology, Inc. : down 3.8%
• Arm Holdings plc : down 4.8%
• QUALCOMM Incorporated : down 2.2%

The sector-wide slump underscores investor concerns that U.S. chipmakers may face mounting challenges exporting their products globally, potentially leading to higher costs and reduced profits.

Warnings from ASML

Adding to the industry’s woes, Dutch company ASML Holding N.V., which manufactures critical equipment for chip production, reported weaker-than-expected orders. Orders for its semiconductor-making machines totaled $4.45 billion in the first quarter, falling short of analysts’ expectations of $5.5 billion. ASML’s shares fell 4.7% in premarket trading.

ASML warned that President Trump’s policies were creating uncertainty for the semiconductor industry. The company’s reduced order volume suggests that chipmakers are scaling back production plans amid geopolitical tensions and shifting trade regulations.

Broader Challenges in 2025

The semiconductor industry has been grappling with a difficult year. Since the beginning of 2025, tech companies have faced declining stock prices, exacerbated by tariff policies and now, tightening export rules:

• Nvidia : down 16.4%
• TSMC : down 21.4%
• Broadcom : down 22.8%
• Micron Technology : down 15.5%
• Advanced Micro Devices : down 21.1%
• Arm Holdings : down 17.5%
• ASML : down 1.8% prior to the latest drop

These declines reflect a sector under pressure from both market forces and governmental policies. The export restrictions are particularly impactful as they not only affect sales but also strain international relationships and supply chains.

Looking Ahead

The long-term implications of the U.S. government’s tightening grip on chip exports remain uncertain. For companies like Nvidia, the immediate financial impacts are clear, but the broader effects on innovation, global competitiveness, and the tech ecosystem are yet to be fully realized. As the semiconductor industry navigates these challenges, stakeholders worldwide will be watching closely to see how policy shifts shape the future of technology and trade.