Nvidia to lose billions in Q1 over trade policies

AMD also expects to an almost $1 billion hit.

Transcript

00:00Some of the world's biggest tech companies are starting to feel the effects of President

00:03Trump's trade policies, and they're expensive. Chip makers in particular are getting hit hard

00:08with shares of NVIDIA and AMD both dropping more than 6% in pre-market trading on April 16th.

00:15AI chip-related stocks, ARM, Broadcom, Marvell Technology, and Micron all saw significant dips

00:21as well. NVIDIA revealed it will incur a $5.5 billion charge this quarter alone for exporting

00:27some of its products to China as well as other countries. China was responsible for 13% of

00:32NVIDIA's sales in 2024, which comes out to roughly $17 billion. The country is NVIDIA's fourth largest

00:38region by sales. Meanwhile, AMD revealed it would be hit with an $800 million bill thanks to the

00:44policies. The sell-off of U.S. stocks had a ripple effect on global markets, with South Korea's

00:50Samsung dropping about 3% and European chip makers ASM International and Infineon Technologies fell

00:55close to 2%. That'll do it for your daily briefing. From New York City, I'm Lauren Torres with The Street.