Global chip stocks from AI giant Nvidia to manufacturers like Taiwan Semiconductors (TSMC) and ASML tumbled Wednesday. The drop came as the Biden administration weighed tighter export controls to stymie China and former President Donald Trump made comments that sparked fresh doubt about America’s commitment to defend Taiwan. Shares of Nvidia, the third-largest company in the U.S. by market capitalization, were down over 6% as of Wednesday afternoon.
The U.S. stock of Nvidia's main supplier, TSMC, was down over 7%. Shares of Tokyo Electron and Netherlands-based ASML dropped 11% and 12%, respectively, as the U.S. ramped up the pressure to prevent both companies from continuing to provide China with advanced semiconductor technology.
