Trump Tariffs: Nvidia, TSMC Stocks Collapse, Chip and AI Futures Under Pressure | Is gpu a graphics card | Gpu hardware for gaming | 10 parts of computer | Turtles AI

Shares of Nvidia, TSMC and other semiconductor leaders have suffered sharp losses following the announcement of new reciprocal tariffs by the United States. Trump’s move, aimed at targeting chip imports from countries such as Taiwan, China and Vietnam, raises concerns about the effects on the supply chain and the global semiconductor economy.

Key Points:

• Trump announces reciprocal tariffs of 34% and 32% on imports from China and Taiwan, respectively.
• Shares of companies such as Nvidia, TSMC, AMD, and Micron have fallen sharply.
• The tariffs could increase costs for AI servers that use advanced chips like Nvidia’s.
• TSMC is investing in a U.S. plant, but the tariffs may not incentivize other manufacturers to move production.

The announcement of new reciprocal tariffs, expected on April 9, has shaken the semiconductor industry, with major chipmaking companies, including Nvidia, TSMC and AMD, suffering sharp declines. US President Donald Trump has announced plans to impose tariffs of 34% on imports from China and 32% on imports from Taiwan, adding to existing duties that will bring the overall tariff on imports from China to 54%. In addition, the administration has introduced a 10% general tariff on imports starting April 5, with a series of measures that will also affect Vietnam, bringing the tariff to 46% on products from that country. The market reaction was immediate, with Nvidia shares losing more than 5%, AMD falling around 4%, and Broadcom and Micron falling 7%, respectively. TSMC, one of the world’s leading manufacturers of advanced chips, saw its stock price fall by about 5%, reflecting the nervousness that pervades the sector.

Trump’s statement, while raising concerns about the direct impact on chipmakers, also appears to have a broader political and economic purpose, aimed at rebalancing the US trade balance. The country is trying to reduce its dependence on imported electronic components, but the consequences of these policies could prove complex. Semiconductors are a key part of modern technology, especially in servers and AI infrastructure, where Nvidia plays a key role with its GPUs. Tariffs on essential components for building servers could make AI systems that use technology like those produced by Nvidia more expensive, potentially impacting demand for chips for these devices.

While Trump has argued that these policies are designed to boost domestic semiconductor production, with the hope that companies like TSMC will move to the US to avoid the tariffs, the reality of the market may be different. Some analysts have said that the tariffs may not be enough to push companies to move production to the US, where operating costs remain very high, despite TSMC’s investment in expanding its manufacturing presence in Arizona. The Taiwanese company itself, which has already started building a plant in the US, may face a series of logistical and economic challenges that will be difficult to overcome.

The impact of these policies on companies is still a matter of debate. Truist analyst William Stein has noted that, despite the difficulties posed by the tariffs, AI chipmakers like Nvidia may be less affected than others, thanks to the ever-growing demand for AI chips. However, not all manufacturers are willing to move their production to the United States, even if the tariffs remain in place. In fact, interviews with several players in the semiconductor supply chain suggest that no one is planning to expand production in the United States to avoid the tariffs, believing that the duties are not a long-term solution to the industry’s global challenges.

While the United States has not yet imposed tariffs on “raw” semiconductors, President Trump has suggested that he may also apply tariffs on these imports in the future, further changing the dynamics of the market. The complex geopolitical environment and the interconnectedness of the global semiconductor supply chain raise questions about how new trade policies may impact the sector in the months ahead. In the meantime, the industry continues to watch the situation closely as companies prepare to navigate an increasingly uncertain economic environment.

The situation remains fluid and the implications of these tariff policies could be felt in the long term, with possible repercussions on sourcing strategies, manufacturing costs and demand for chips across various technology sectors.