Major semiconductor stocks experienced significant declines following the Trump-Xi summit's failure to deliver fresh trade breakthroughs. According to reports from The Wall Street Journal, Nvidia shares dropped 4.12% to $226.02, Intel declined 6.8% to $107.97, and Advanced Micro Devices (AMD) fell 4.8% to $430.84 by 9:45 a.m. EST. Memory-chip maker Micron Technology opened nearly 6% lower at $730.01. 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. As reported by Analytics Insight, the NASDAQ fell more than 1% as chip- and artificial intelligence-linked stocks came under pressure, with investors taking profits after a sharp rally in recent weeks.
The weakness extended beyond US markets, affecting Asian and European semiconductor companies. As reported by The Wall Street Journal, 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%. According to Analytics Insight, declining stocks outnumbered advancing names on both the NYSE and NASDAQ, showing broad selling pressure across technology sectors. The global nature of the decline reflects investor concerns about the broader semiconductor trade landscape between the US and China.
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. However, according to a report by The Wall Street Journal, US Trade Representative Jamieson Greer told Bloomberg that semiconductors and Nvidia 'weren't front and center during the summit'. Greer emphasized that it was a 'sovereign decision for China' whether to buy from Nvidia, noting that the Chinese are 'very committed to domestic production' and often view US high-tech as a threat to their own growth. As noted by Analytics Insight, market watchers said investors had expected more progress on trade, technology, and the Iran conflict, making the summit's failure particularly disappointing for semiconductor stocks.
Despite the summit disappointment, there have been some positive developments in chip exports. According to a report by The Wall Street Journal, the US has already authorized Nvidia to export its H200 chips to China, though Beijing has yet to formally approve shipments. This authorization had raised investor hopes for potential AI chip deals with China, making the summit's failure particularly disappointing for semiconductor stocks. President Trump told reporters on Air Force One that China hasn't bought any Nvidia chips 'because they chose not to. They want to try and develop their own.' As reported by Analytics Insight, Boeing shares moved lower after Trump said China agreed to buy 200 jets, with traders viewing the figure as limited because it was only 50 more than earlier expectations.
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. According to Analytics Insight, Keith Lerner of Truist Advisory Services said the broadening trade had 'really fizzled out', with broad indexes looking firm mainly because of the heavy weight of technology shares. The broader backdrop remains dominated by rising technology tensions between Washington and Beijing, with the US tightening 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. Bond yields climbed sharply after recent inflation readings, with the 10-year Treasury yield moving near 4.57% and the 30-year yield rising above 5.1%, reaching its highest level in nearly a year. Oil prices rose as traders reacted to fresh uncertainty around the Middle East conflict, with Brent crude trading near $108 a barrel and US West Texas Intermediate moving above $104.
