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 market’s left staring down one hard truth: geopolitics is now pricing your portfolio.
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Nvidia Faces Billions in Revenue Risk
Let’s 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 firm—raising red flags about compliance with export laws and exposing the company to a massive $5.5 billion revenue risk.
That’s not a typo. $5.5 billion. For a company built on AI dominance, it’s a gut punch. Unsurprisingly, shares took a hit as investors started to recalibrate just how much of Nvidia’s China exposure might be at stake.
Sector Sinks as Policy Uncertainty Spikes
Nvidia wasn’t 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 couldn’t dodge it. The index dropped over 3%—wiping out nearly $1 trillion in value. As The Guardian put it, DeepSeek’s rapid rise has become a “Sputnik moment” for the AI arms race. That moment just arrived on Wall Street’s doorstep.
Now, it’s likely that Wall Street will start favoring companies with lower China exposure or stronger domestic supply chains. The question isn’t whether China matters to Big Tech — it’s how much of that is already priced in.
List of Major Stocks Feeling the Heat
Here’s 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): Suffered 7% stock fall
Investors can track the fallout’s impact on these stocks using the TipRanks Stocks Comparison tool. Click the image below to learn more.
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