Nvidia Slips, Intel Gains as US Imposes 25% Tariff on Select Semiconductors
Nvidia shares fell sharply at Wednesday's close after the WHITE House announced new 25% tariffs targeting advanced computing chips. The measures, justified on national security grounds, aim to reshore semiconductor production and reduce reliance on foreign supply chains—particularly Taiwan. Intel shares bucked the trend, rising amid expectations it could benefit from domestic manufacturing incentives.
The tariffs follow controversy over Nvidia's H200 chip sales to China, which bipartisan critics argued WOULD accelerate Beijing's AI capabilities. 'The United States manufactures only 10% of required chips,' the White House stated, calling foreign dependence 'a critical vulnerability.' The policy shift reflects growing tech-sector protectionism as Washington seeks to maintain its AI lead.
