Global chipmakers feel the pinch of Trump’s shifting trade policy

Global chip stocks were battered on Wednesday on fresh evidence of how US President Donald Trump's shifting trade policy was complicating the outlook for semiconductor and computing giants, including AI pioneer Nvidia and its rival AMD.

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Attempts to reorient global trade through tariffs and export curbs have started to show the effect as Nvidia warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China, while Dutch chip-making tools giant ASML raised doubts about its outlook.

The US restriction, which also hit the M1308 processor of Advanced Micro Devices, marked the latest blow for the AI chip trade that is losing steam after a two-year rally as tariff threats and fears over Big Tech's spending weigh on sentiment.

Nvidia shares fell close to 6%, with the company set to lose more than $148 billion in market value.

AMD fell 5.8% as it warned of a $800 million hit from the latest curb, while Al-related chip stocks, including Arm, Broadcom and Micron dropped between 2.5% and 4.6%.

"The US export restrictions on Nvidia's H2O chips highlight the growing geopolitical uncertainty enveloping the tech and semiconductor sectors, particularly under Trump-era-style policy reversals," said Michael Ashley Schulman, chief investment officer at Running Point Capital.