chip giants face headwinds amid us export policy shifts
Washington, Saturday, 20 September 2025.
us semiconductor export policy is in flux. Nvidia and amd face revenue challenges. These policies impact emerging markets like India and Brazil. The uncertainty coincides with leadership transitions, adding complexity. Nvidia’s Q3 2025 data center revenue reached $30.8 billion, a 112% increase. AMD’s data center segment grew 122% year-over-year in Q3 2024. Despite growth, inconsistent policies pose risks. Huawei’s Ascend 910 series presents a cost-effective alternative. These factors affect future investments and market competitiveness for us chipmakers.
Nvidia’s stock market reaction
Nvidia’s stock experienced a 5% drop on September 18, 2025, reflecting market apprehension regarding the expanded export restrictions [4]. These regulations aim to curb China’s access to advanced AI and computing technologies, directly impacting Nvidia’s potential sales in the region [4]. Simultaneously, competitor Altera anticipates benefiting from these restrictions, potentially altering the competitive landscape [4]. Professor Wei Shaojun suggests Asian countries reduce reliance on Nvidia GPUs to mitigate dependence on US technology [4]. This confluence of factors presents challenges to Nvidia’s market position and revenue streams.
Impact of us export policies on nvidia
The evolving U.S. semiconductor export policy introduces considerable uncertainty for Nvidia [1][2]. A prior instance of H20 export restrictions resulted in a $5.5 billion financial setback for the company [1]. While new policies aim to provide access to markets like India, Brazil, and the UAE, China remains under strict control [1]. This creates a complex situation where Nvidia must navigate shifting regulations while also contending with cost-effective alternatives like Huawei’s Ascend 910 series [1]. Industry stakeholders are advocating for more consistent and transparent export policies to mitigate these challenges [2].
malaysia trade affected by us tariffs
The impact of U.S. trade policies extends beyond chipmakers to international trade partners. Malaysia’s exports to the U.S. fell by 16.7% in August, influenced by new U.S. tariff policies [3]. Overall, Malaysia’s exports grew by only 1.9% in August, a significant decrease from the 6.8% growth in July [3]. This decline highlights the potential for U.S. trade policies to disrupt global trade flows and negatively affect the demand for semiconductors and related products [3]. The Malaysian government is seeking clarification from the U.S. regarding semiconductor and chip tariffs [3].
broader industry trends and competitive dynamics
The semiconductor industry is undergoing substantial changes, including leadership transitions and evolving export regulations [2]. These factors create both risks and opportunities for companies [2]. Companies capable of adapting to these changes may emerge stronger, while others could face challenges [2]. The industry is projected to reach $697 billion in 2025, with AI chips accounting for $150 billion [1]. These figures underscore the high stakes and intense competition within the semiconductor market, where strategic decisions and policy changes can significantly impact a company’s trajectory [1].