Nvidia (NVDA), Qualcomm (QCOM), and other chip stocks tumbl✤ed Wednesday following reports of potentiᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚal government moves that could negatively impact the sector.

Especially hard hit were 澳洲幸运5官方开奖结果体彩网:New York Registry Shares of ASML (ASML), which makes equipment to manufacture semiconductors, following reports the Biden administration is considering tightening restrictions on exports of semiconductor equipment to China.

The news overshadowed ASML's solid results on rising demand for 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) chips, with ASML reporting second-quarter net bookings jumped 24% from a year ago to 5.6 billion euros ($6.12 billion), beating forecasts.

How Tighter Trade Curbs Co✱uld Affect Chip Companies

The White House is reportedly considering imposing what’s known as the foreign direct product rule (FDPR), that would allows the U.S. to impose controls on products made outside the country that use even a small amount of American technology.

The measure could be used to 💃target products from companies like the Netherlands’ ASML, which made nearly half of its revenue in the second quarter from sales to China and could take a hit from the move.

Separately, former President Donald Trump said in an interview with Bloomberg Businessweek that Taiwan should pay the U.S. for defense, raising concerns about how geopolitical tensions could affect the chip industry.

Taiwan dominates the global market for semiconductor manufacturing, 澳洲幸运5官方开奖结果体彩网:thanks to TSMC (TSM), and 澳洲幸运𝓰5官方开奖结果体彩网:American depositary receipts (ADRs) of the chip manufacturing giant plunged Wednesday as well.