On Tuesday, semiconductor stocks took a sharp hit on the New York Stock Exchange, with Nvidia, a leader in AI chips, seeing a nearly 5% drop.
The decline stemmed from reports that the U.S. government is considering new export limits on AI chips by country and a weaker-than-expected earnings forecast from Dutch chip equipment giant ASML.
Nvidia’s stock, which had briefly surpassed Apple’s market capitalization the previous day, fell by 4.69%, wiping out $158 billion in market value and further widening the gap with Apple. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip foundry and a key producer for Nvidia, also saw its stock dip by 2.64%.
Other major chip manufacturers, including AMD, Intel, Arm, Broadcom, and Micron, followed suit, with stock prices falling between 3.2% and 5%. This contributed to a nearly 5% decline in the Philadelphia SE Semiconductor Index, reflecting widespread concerns in the sector.
ASML’s stock plummeted 16% after the company projected 2025 revenue well below market expectations and accidentally released its earnings report ahead of schedule. The company’s performance has struggled due to delayed recovery in demand for chips outside the AI sector.
Bloomberg reported that U.S. officials are considering restricting AI chip exports to specific countries, primarily in the Persian Gulf region, over national security reasons. The U.S. fears that Middle Eastern nations might supply chips to China, which is banned from importing them.
Most Commented