Squawk on the Street Chips Pain: Nvidia, AMD Slide on U.S. Export Restrictions to China 4/16/25
6 snips
Apr 16, 2025 The tech sector faces turmoil as Nvidia and AMD's stocks slide due to new U.S. export restrictions on chip sales to China. The hosts dissect the implications for investors and the semiconductor industry amid escalating geopolitical tensions. Positive retail sales data suggests a stronger economy, while the ongoing U.S.-China trade war looms large. They also touch on market strategies and the performance of airlines and retail giants like Costco and Target in a shifting economic landscape.
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Nvidia Faces Huge Export Charge
- Nvidia expects a $5.5 billion charge due to new US restrictions on exporting certain GPUs to China.
- These restrictions highlight the complexities of US-China trade tensions impacting tech companies significantly.
Nvidia Chips Power U.S. Missiles
- Nvidia chips are crucial not only for AI but also for military applications like missile guidance.
- This dual-use nature explains the US government's firm stance on export controls to China.
ASML Faces Growth and Tariff Challenges
- ASML, a key chip lithography company, reports slowing growth and declining sales to China from 41% to 27%.
- Tariff-related uncertainties could further restrict supply of vital chipmaking equipment, impacting global semiconductor production.
