Asia Stock Markets Plunge: Tech Investors Hit the Panic Button Amid Selloff

On Wednesday, tech share prices took a hit across Asia, with Nvidia’s announcement of U.S. government restrictions on chip sales to China playing a significant role. This marks the first major constraints from the Trump administration on semiconductor exports, directly impacting Nvidia’s dominance in the artificial intelligence chip market. The new regulations require Nvidia to obtain licenses for selling A.I. chips to China, raising concerns that its sales could diminish drastically, potentially ending a lucrative business segment amid ongoing geopolitical tensions.

In a regulatory update, Nvidia projected a $5.5 billion loss due to unsellable inventory and unfulfilled orders, resulting in a 6 percent drop in its stock during after-hours trading. Stock indices fell across Asia, with Japan down 1 percent, Hong Kong 2.5 percent, and Taiwan—a key chip manufacturing hub—seeing losses of 2 percent as well. Taiwan Semiconductor Manufacturing Company, heavily reliant on Nvidia, faced a similar decline of 2.5 percent.

In the U.S., S&P 500 futures were down more than 1 percent, following a slight dip in the index the previous day. Despite mixed performances, positive earnings in banking and progress on a U.S.-U.K. trade deal provided some stability. Investors are wary, though, as a Bank of America survey reveals record cuts to U.S. stock holdings amid fears of a recession fueled by ongoing trade tensions under Trump’s tariffs.