Tech Stocks Lead Global Sell-Off as U.S. Tightens AI Chip Export Rules
Technology shares dragged global equities lower after the Trump administration escalated trade tensions by introducing fresh restrictions on AI chip exports to China.
The Nasdaq fell as much as 2.4% in premarket trading, with Nvidia leading the decline. The chipmaker’s shares were poised to drop 6.6% after it warned on Tuesday that new export controls would cost the company $5.5 billion (£4.1 billion). The restrictions target its H20 chip, a model developed specifically for the Chinese market and designed to support artificial intelligence applications.
Other major tech firms also suffered. ASML, the world’s largest supplier of semiconductor manufacturing equipment, slipped 4.6%, while Dell and Apple declined 3.2% and 1.8%, respectively.
Francois Antomarchi of Degroof Petercam Asset Management commented: “We’re maintaining a defensive stance in this period of heightened uncertainty, and are becoming increasingly cautious on tech stocks and sectors with significant exposure to China.”
He added: “The question now is whether we’ve reached the geopolitical bottom of this trade war—and I’m not convinced we have.”
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