U.S. tech stocks tumbled after the Trump administration blacklisted Chinese AI firm DeepSeek from accessing American technology. Nvidia (NVDA), AMD (AMD), and Palantir (PLTR) were among the hardest hit as investors digested what the move could mean for future chip exports and global AI dominance. The marketâs left staring down one hard truth: geopolitics is now pricing your portfolio.
Nvidia Faces Billions in Revenue Risk
Letâs start with the elephant in the server room. Nvidia, which has become practically synonymous with AI itself, was already under pressure from tighter export rules. But DeepSeek took that concern to a whole new level. Nvidia may have sold as many as 60,000 advanced chips to the Chinese firmâraising red flags about compliance with export laws and exposing the company to a massive $5.5 billion revenue risk.
Thatâs not a typo. $5.5 billion. For a company built on AI dominance, itâs a gut punch. Unsurprisingly, shares took a hit as investors started to recalibrate just how much of Nvidiaâs China exposure might be at stake.
Sector Sinks as Policy Uncertainty Spikes
Nvidia wasnât alone. The fallout spread fast. AMD warned it could face an $800 million impact from similar export restrictions. Palantir shares slid too, caught up in a broader risk-off move in AI names.
Even the Nasdaq couldnât dodge it. The index dropped over 3%âwiping out nearly $1 trillion in value. As The Guardian put it, DeepSeekâs rapid rise has become a âSputnik momentâ for the AI arms race. That moment just arrived on Wall Streetâs doorstep.
Now, itâs likely that Wall Street will start favoring companies with lower China exposure or stronger domestic supply chains. The question isnât whether China matters to Big Tech â itâs how much of that is already priced in.
List of Major Stocks Feeling the Heat
Hereâs a quick rundown of the AI stocks caught in the crosshairs:
- Nvidia (NVDA): Facing $5.5B in lost revenue, stock dipped
- AMD (AMD): Warned of $800M charge
- Palantir (PLTR): Down on export risk
- Super Micro Computer (SMCI): Fell 12% amid fears of weaker demand
- Alphabet (GOOGL): Dropped over 4%
- Microsoft (MSFT): Slid 2.5%
- ASML (ASML):Â Suffered 7% stock fall
Investors can track the falloutâs impact on these stocks using the TipRanks Stocks Comparison tool. Click the image below to learn more.
