U.S. Curbs AI Chip Exports, Global Markets Tumble

The U.S. government imposed new export restrictions on Nvidia's H20 AI chips and AMD's MI308 chips to China, triggering a $5.5 billion charge for Nvidia and a nearly 6% drop in its shares. The curbs also caused declines for chipmakers like AMD, Broadcom, Qualcomm, and Micron, contributing to sharp falls in major U.S., Asian, and European stock markets, while gold prices hit record highs. The new licensing requirements, along with President Trump’s probe into tariffs on critical minerals, have heightened global trade tensions and market volatility. ASML flagged increased uncertainty for global supply chains due to these policies. The restrictions have raised concerns about the broader economic impact, with investors closely watching for statements from Fed Chair Jerome Powell and U.S. retail sales data. The escalating trade war is reshaping technology sectors and prompting Chinese firms to consider domestic alternatives.