[Alpha Biz= Paul Lee] New York – April 21, 2025 (local time) – Major semiconductor stocks fell sharply on Monday, with Nvidia leading the decline amid reports that Chinese tech giant Huawei may soon launch advanced AI chips. The Philadelphia Semiconductor Index dropped 2.10% to close at 3,751.91 points.


Nvidia shares tumbled 4.51% to close at $96.91, falling below the psychologically significant $100 mark for the first time since August 7, 2024. The steep decline also trimmed Nvidia’s market capitalization to approximately $2.365 trillion.


The sharp selloff came after Reuters reported that Huawei could begin rolling out its own high-performance AI chips as early as next month—posing a major threat to Nvidia’s dominance in the Chinese market. Nvidia is already under pressure from U.S. export restrictions imposed during the Trump administration, which recently blocked the export of its China-specific H20 AI chip.


News of Huawei’s upcoming chip launch has further fueled concerns about Nvidia’s ability to maintain its foothold in China, a key growth market.


The broader semiconductor sector also took a hit. AMD dropped 2.22%, Intel fell 0.48%, Micron lost 2.99%, Broadcom slipped 2.80%, and Taiwan's TSMC declined by 2.56%.


As a result, the overall semiconductor index closed more than 2% lower, reflecting heightened investor anxiety over rising competition and geopolitical risks in the chip industry.

 

 

 

 

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