Trade Restrictions

House Speaker Mike Johnson criticized China as an “adversary” after reports surfaced of Beijing instructing tech firms to stop buying Nvidia’s AI chips, including the RTX Pro 6000D. This move signals China’s growing confidence in its domestic semiconductor industry and its push for self-reliance, substituting Nvidia’s products with alternatives like Huawei’s Ascend 910B. Nvidia’s CEO expressed disappointment, and analysts note potential revenue losses for U.S. chipmakers, highlighting the escalating conflict over AI chip access. China’s strategy may aim to bolster its domestic AI chip development.

ASML, the Dutch lithography leader, is facing growth challenges due to U.S. trade policies and escalating geopolitical uncertainties. CEO Christophe Fouquet warned the company may not meet its 2026 growth targets. Vulnerability to potential U.S. trade restrictions and rising prices have created a challenging market environment. Investor concerns triggered a significant drop in ASML shares. While Q2 2025 results show strong revenue and net profit, the future outlook remains uncertain.