Global semiconductor stocks slid sharply on Friday after a summit between US President Donald Trump and Chinese President Xi Jinping ended without major announcements on semiconductor trade or expanded market access for US chipmakers.
The selloff intensified across Wall Street and global markets as investors unwound bets that the high-profile meeting would pave the way for fresh AI chip deals with China.
Shares of Nvidia fell more than 2.5% in premarket trade before extending losses after the opening bell. By 9:45 a.m. EST, Nvidia was down 4.12% at $226.02.
Intel declined 6.8% to $107.97, while Advanced Micro Devices, or AMD, traded 4.8% lower at $430.84 around 9:46 a.m. EST.
Memory-chip maker Micron Technology also came under pressure, opening nearly 6% lower at $730.01.
The weakness spilled into Asian and European semiconductor counters. South Korean chipmaker SK Hynix, a key Nvidia supplier, closed 7.7% lower. In Europe, STMicroelectronics dropped 4.8%, while Infineon Technologies and ASML Holding each fell 4.7%.
Investor expectations had risen ahead of the summit after Nvidia CEO Jensen Huang joined a delegation of US business leaders travelling to China alongside Trump. The delegation also included Tim Cook of Apple and Elon Musk of Tesla.
According to a report by The Wall Street Journal, the US has already authorised Nvidia to export its H200 chips to China, though Beijing has yet to formally approve shipments.
“Investors were betting on the trip for tangible news that could lift Nvidia's sales even further,” Danni Hewson, head of financial analysis at AJ Bell, said in market commentary.
However, US Trade Representative Jamieson Greer told Bloomberg that semiconductors and Nvidia “weren't front and centre” during summit discussions.
The pullback marks a rare pause in the AI-driven rally that has propelled chip stocks in recent months amid surging demand for data centre infrastructure and artificial intelligence computing.
The broader backdrop remains dominated by rising technology tensions between Washington and Beijing. The US has tightened export restrictions on advanced semiconductors over concerns tied to military and AI applications, while China has accelerated efforts to build domestic alternatives and reduce reliance on foreign chipmakers.
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