AI Giants Nvidia and AMD Hit by U.S.-China Trade War Fallout

Shares fell in Asia as Nvidia faced U.S. restrictions on selling AI chips to China, intensifying global trade tensions. Nvidia's shares dropped 6%, hurting Asian markets and sparking gold's rise. This move signals escalating U.S.-China economic rivalry, impacting stocks and currency markets worldwide.

Shares across Asia dipped on Wednesday as AI industry leader Nvidia faced challenges due to U.S. restrictions on chip exports to China. These actions underscore the expanding global trade conflict, as gold prices surged and safe-haven currencies strengthened in response.

Overnight, the U.S. implemented new export licensing rules affecting Nvidia's H20 and AMD's MI308 AI chips. Nvidia's stocks fell by 6% following the announcement of an expected $5.5 billion revenue loss due to these limitations. This move is seen as a significant blow to Nvidia's operations in China, potentially marking the start of a tech skirmish between Beijing and Washington.

Meanwhile, Asian markets saw a noticeable downturn. Major indexes in Japan and Hong Kong recorded declines, and the sell-off extended to European futures markets. In contrast, heightened uncertainty boosted gold to a new record high, while currencies like the yen and Swiss franc gained as investors sought stability.

(With inputs from agencies.)