SMH is trading 2.8% lower today as risk-off sentiment hits high-growth tech and AI plays, primarily driven by reports that Beijing is blocking purchase approvals for Nvidia H200 AI chips.
- The setback undermines a key part of the China growth story for Nvidia, a major SMH holding, weighing heavily on the broader semiconductor and information technology complex.
- Tech stocks are facing broader pressure with Nasdaq futures down about 1% as traders lock in gains following Thursday’s record index highs.
- Investors are reassessing AI-related earnings exposure in light of increasing geopolitical and regulatory uncertainty surrounding global chip distribution.