Global tech stocks drop as ASML warning adds to Nvidia curbs

TECHNOLOGY stocks sank as new US government restrictions on the export of Nvidia chips to China and a disappointing report from ASML Holding dimmed the outlook for the semiconductor sector, wiping out $155 billion (R2.9 trillion) in market value for the two companies alone.

- BLOOMBERG

Nvidia fell as much as 7.1% in US premarket trading after the chipmaker warned it will report around $5.5bn in related charges during the fiscal first quarter, contributing to a 1.3% decline in Nasdaq 100 futures. Dutch chip-equipment maker ASML slid as much as 7.6%. The selloff in semiconductor stocks over the past three months has already wiped out about $2trl in market capitalisation.

President Donald Trump’s administration has barred Nvidia from selling its H20 chip in China, an escalation of Washington's tech battle with Beijing. ASML later added to investor anxiety by posting orders that missed expectations and saying that it doesn’t know how to quantify the impact of recent tariff announcements.