• Technology stocks plunged as the chipmaking sector warned of ongoing uncertainty and higher costs from President Donald Trump's tariff plans.
• Nvidia said that it will take a $5.5 billion charge tied to China exports, while Advanced Micro Devices expects a hit of up to $800 million.
• Dutch semiconductor equipment maker ASML missed order expectations and said tariff restrictions create demand uncertainty.

Technology stocks dropped Wednesday, led by a 7% plunge in , as the chipmaking sector signaled that President Donald Trump's sweeping tariff plans could hamper semiconductor demand.

Nvidia revealed in Tuesday that it take a $5.5 billion charge in the first quarter tied to exporting its processing units to China and other countries.The government will also require a license to ship the chips there and other destinations, the company said.

The Nvidia chip was designed specifically for China use to meet U.S. export restrictions barring the sale of advanced artificial intelligence processors during former President Joe Biden's administration. The chips totaled an estimated $12 billion to $15 billion in revenue last year. echoed similar concerns, saying in a filing Wednesday from curbs on its .

The disclosures from Nvidia and AMD serve as the first major warning signs that Trump's fierce battle with China could stifle growth for the critical components utilized in the world's largest tech innovations. The administration has made some exemptions for electronics, including semiconductors, but has warned that separate could come in the future.

Adding to the sour sentiment was a disappointing print from Dutch semiconductor equipment maker . The company and said tariff restrictions create demand uncertainty, pushing shares down 7%. Equipment makers and fell about 5% in sympathy.

Chipmaking stocks fell across the sector, with the declining more than 4%. AMD plummeted about 7%, while , and slipped more than 2% each.

The declines and tech-heavy Nasdaq Composite, which dropped more than 3%. , , declined around 3% each, while Tesla fell 5%. lost more than 2%.

Tech volatility

Investors had hoped President Trump's new term in office would usher in a period of strength for the technology sector. That hope helped power the market to new highs in the post-election market rally and sent top tech executives flocking Washington to show their support on Inauguration Day.

But technology stocks have recorded significant market cap losses since the January, whipsawing in the wake of Trump's tariff announcements as global trade war fears and recession concerns mounted. Year to date, Nvidia, Apple, and Amazon have lost about a fifth of their value, while Tesla is down more than 40%.

The ongoing tariff uncertainty and swift changes in policy have created a volatile stretch for global markets. Stocks initially fell on the news, leading the the "" stocks to shed in market value over two trading days. The turbulence continued as Trump later announced a on most reciprocal tariffs, sending the to its last week.

While technology stocks have bounced from their lows, megacaps sit off their highs this month. Apple and Meta Platforms are down more than 12% each in April, while Amazon and Tesla have slumped more than 8%. Nvidia is down about 7%.

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