New York, Jan 14, 2026, 5:18 PM ET — After-hours
- Nvidia slipped in after-hours trading following the White House’s announcement of a 25% tariff on specific advanced computing chips
- The tariff hit comes as the U.S. steps up scrutiny of Nvidia’s H200 sales to China
- Traders are shifting focus to AMD’s Feb. 3 earnings and Nvidia’s Feb. 25 report for insight on demand and the impact of policy changes
Nvidia shares dipped 1.5% to $183.14 in after-hours trading Wednesday following President Donald Trump’s announcement of a 25% tariff on certain advanced computing chips, including Nvidia’s H200 AI processor. Meanwhile, AMD, whose MI325X chip was also named in the White House fact sheet, gained 1.2%, closing at $223.60. (Reuters)
The announcement landed amid a market that’s been pricing AI chip makers like they’re tied to policy moves. The burning question now: not only demand, but if Washington is gearing up to change the cost structure in the globe’s busiest trade corridor.
The tariff move comes amid a separate U.S. decision that’s thrust Nvidia back into the political spotlight: new rules allowing H200 chip sales to China. Former Trump Asia adviser Matt Pottinger criticized the administration at a congressional hearing, calling its AI policy the “wrong track” and later dismissed the idea that restricting chip sales would slow China’s AI ambitions as a “fantasy.” Nvidia responded, saying, “America should always want its industry to compete for vetted and approved commercial business.” The rules do include third-party testing and caps on the number of chips that can be shipped to China. Reuters also reported that Chinese customs officials have been told H200 chips are banned from entering the country. (Reuters)
Tech stocks were already under pressure before the late chip news hit. The Nasdaq fell 1% during regular hours, with investors keen to “rotate out of expensive megacaps,” said Michael O’Rourke, chief market strategist at JonesTrading. (Reuters)
AMD got a boost earlier from Wall Street. KeyBanc Capital Markets analyst John Vinh upgraded the stock to “overweight” and bumped his price target to $270. He pointed to stronger demand for AMD’s server CPUs and MI-series AI chips. Rising orders from “hyperscalers”—the biggest cloud operators—are pushing some product lines close to sell-out, Vinh said. (MarketWatch)
Behind the scenes, investors are diving deeper into the AI hardware supply chain beyond just processors. Retail traders have been snapping up shares in memory and data storage chipmakers as demand for AI infrastructure strains supply and drives prices higher. Interactive Brokers strategist Steve Sosnick noted, “Memory chips are certainly among the themes that are exciting our customers these days.” (Reuters)
Traders see the new tariff as a clear signal: “AI chips” aren’t a single product. Nvidia’s H200 and AMD’s MI325X, labeled accelerators, are designed for data centers to train and operate AI models. But they’re just part of a broader setup that also includes high-bandwidth memory, servers, and networking hardware.
The risks stand out and aren’t balanced. Should tariffs extend beyond a limited set, costs could ripple rapidly across supply chains, squeezing margins or pushing prices up. On China’s end, stricter export controls—or tougher border enforcement—might hold up shipments, even if sales remain permitted.
Next up: demand and pricing power. AMD plans to release its fiscal Q4 and full-year 2025 results on Feb. 3 after markets close. Nvidia, meanwhile, has set Feb. 25 for its fiscal Q4 FY26 earnings. Investors will be tuned in for updates on China, tariffs, and data-center spending trends. (AMD)
