US Chipmakers Under Pressure as China Targets Qualcomm, Nvidia
Qualcomm faces a new antitrust probe over its Autotalks acquisition while Nvidia's AI chip shipments see heightened scrutiny from Beijing.
The U.S. semiconductor sector is facing renewed headwinds amid escalating trade tensions with China, as Beijing launches targeted actions against industry giants Qualcomm (QCOM) and Nvidia (NVDA). The moves have amplified investor concerns, contributing to significant pre-market declines and highlighting the sector's vulnerability to geopolitical friction.
Qualcomm's shares saw a notable drop after Chinese regulators , a maker of chips for vehicle-to-everything (V2X) communications. This investigation signals Beijing's willingness to use regulatory tools to exert pressure on American technology firms. The probe introduces significant uncertainty for a deal aimed at bolstering Qualcomm's automotive chip business.
Adding to the sector's woes, Nvidia is grappling with a . The heightened scrutiny follows a series of broad designed to limit China's access to advanced AI technology. This has created a challenging environment for Nvidia, which has seen its stock fall nearly 5% as it navigates restrictions on its ability to sell high-performance chips to the lucrative Chinese market. These recent actions are widely seen as a direct response to Washington's efforts to curb China's technological ambitions, placing U.S. chipmakers squarely in the middle of a deepening tech rivalry.