The technological actions sank because the new restrictions of the US Government export Nvidia Corp. to China and A disappointing report of ASML Holding NV fogged the prospects for the semiconductor sector, eliminating US $ 155,000 million in market value only for the two companies.
Nvidia fell up to 7.1% in operations prior to the opening of the US market after the chips manufacturer warned that it will report around US $ 5.5 billion in related positions during the first fiscal quarter, which contributed to a 1.3% drop in the futures of Nasdaq 100. The Dutch manufacturer of ASML chips fell to 7.6%. The sales wave of semiconductor shares in the last three months has already eliminated about 2 billion dollars in stock capitalization.
The administration of President Donald Trump has banned NVIDIA to sell his H20 chip in China, which intensifies the technological dispute between Washington and Beijing. Subsequently, ASML increased the anxiety of investors by publishing orders that did not meet expectations and stating that he does not know how to quantify the impact of recent tariff ads.
“While ASML fulfilled income, he has disappointed investors at a time when uncertainty will punish these results,” said Ben Barringer, Quilter Cheviot technology analyst. In addition to the latest export restrictions of Nvidia chips, “all this adds to the numerous headaches faced by the executive directors of the technological sector at this time, and there is no indications that the difficulties end soon.”
The latest events show how tariffs are already wreaking havoc in global companies. The fall of ASML laid European companies in the semiconductor industry, causing a 2.2% drop in the Stoxx 600 technological index.
Trump’s commercial war is promoting economists to reduce their GDP growth forecasts worldwidewhich questions the perspectives for everything, from the demand for smartphones to computer science.
Even before Washington imposed additional tariffs to much of the world (and then reversed shortly after), analysts had wondered if the big technology companies, From Microsoft Corp. to Meta Platforms Inc., they will continue to buy NVIDIA chips at the same rate in 2025.
A greater fall than expected in ASML reserves failed to dissipate concerns about a possible deceleration of the demand for AI. The attention of investors will now focus on the results of its key client, Taiwan Semiconductor Manufacturing Co., which will be published on Thursday.
Although ASML’s management affirmed its long -term optimism, “the lack of reserves caused new debates about whether the wave of expenses promoted by giants such as Google, Nvidia and Microsoft could be cooling,” Said Jacob Falkencrone, global head of Saxo Investment Strategy.
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Semiconductor companies, very sensitive to economic cycles, have been the most affected by the market sales wave this year. The Philadelphia semiconductor index has fallen almost 20 % in 2025, behind an 8 % drop in the S&P 500.
The latest Nvidia exports restrictions to China marked another setback for an industry already beaten by geopolitical tensions and an interrupted supply chain.
The restrictions of the H20 are due to the concern for China’s boom in the electronic sector and, in that sense, they are likely to become a permanent policy, said Tomo Kinoshita, Global Market Strata of Investco Asset Management. They are expected to have a significant negative impact on the semiconductor supply chain.
Among the main NVIDIA suppliers in Asia, the Korean manufacturer of memoirs SK Hynix Inc. fell 3.7% on Wednesday, while Taiwanés TSMC dropped 2.5%. The Japanese manufacturer of Advantest Corp. fell 6.6%.
For China, the broader restrictions arouse the concern that access to global technological hardware is even more restricted. Exports of the most advanced chips and equipment to the Asian country are already prohibited, and the H20 is a smaller product, specifically designed to not be too powerful.
“This reminds us of the possible susceptibility of technological actions to the tense relationship between the United States and China in the field of semiconductors,” said Tim Water, KCM Chief Analyst of Sydney Trade in Sydney. “There is a dependency of the H2O chip by the large companies of the Asian technology sector, so any movement that may affect the offer will involve a ballast for the sector in general.”
The Chinese technological actions that quote in the United States had a generalized decrease in the operations prior to the market: Alibaba Group Holding Ltd. dropped 2.2% and Baidu Inc. fell 1.5%.
On the other side of the equation, China continues to work to achieve self -sufficiency in technology, although its companies are still very lagging for advanced world leaders such as Nvidia.
Among the Chinese hardware actions that resisted the falls of the regional sector on Wednesday, Hua Hong Semiconductor Ltd. closed with a 0.6% rise in Hong Kongwhile Advanced Micro-Fabrication Equipment Inc. rose 2.5% in Shanghai.
“Innovation in AI in China is booming and the prohibition of H₂O will not stop it; it could accelerate the use of Chinese national chips,” said Vey-Sern Ling, general director of Union Bancaire Privée. “National IA chips may not have the same performance as Nvidia’s H₂o, but that is not important. China has been able to develop innovative models of AI despite US restrictions.”
