Trump's Tariffs Trigger Tech Tumble! Is This the End of Moore's Law?

Another Fine Mess Eh?

Well folks looks like things are getting interesting in the tech world. Nvidia and AMD are singing the blues after Trump's tariff plans sent their stock prices into a nosedive. Reminds me of the early days of Microsoft – always dealing with unexpected glitches except now the glitches are political! A 7% plunge in Nvidia? That's enough to make even Clippy raise an eyebrow! I always say 'Success is a lousy teacher. It seduces smart people into thinking they can't lose.' Guess some folks are learning that lesson the hard way.

The China Chip Conundrum

Nvidia's got a $5.5 billion charge looming all tied to exporting those H20 graphics processing units to China. And now they need a license to ship 'em? Seems like someone's playing hardball. These chips were specifically designed for China to comply with US export restrictions during the previous administration. Talk about a 'blue screen of death' for their revenue forecast! AMD's also feeling the heat expecting an $800 million hit. It's like trying to debug a program with a hammer – not the most elegant solution.

When Tariffs Attack!

These disclosures from Nvidia and AMD are like the canary in the coal mine warning us that Trump's trade war could stifle growth in the tech sector. It's not just the chipmakers; even ASML the Dutch semiconductor equipment maker is feeling the pain. Missed order expectations and demand uncertainty? Sounds like a recipe for a tech wreck! I remember when people said Microsoft was too big to fail... but that's just a story for another day.

The Magnificent (And Now Slightly Less Magnificent) Seven

The fallout isn't limited to chipmakers. Meta Apple Amazon Microsoft (yes even us!) Tesla and Alphabet are all feeling the pinch. The 'Magnificent Seven' stocks shed over $1.8 trillion in market value over two trading days. That's enough money to buy a small country... or maybe just fund a few more philanthropic endeavors. I guess nobody is too big to fall!

Volatility: The Only Constant

Investors had high hopes for the tech sector under Trump but the reality has been a rollercoaster. Remember that post election market rally? Good times! Now we're seeing significant market cap losses. Nvidia Apple and Amazon have lost about a fifth of their value year to date while Tesla is down over 40%. As I always say 'Your most unhappy customers are your greatest source of learning.' But this is a learning experience I think most people would rather avoid.

Hope Springs Eternal (Maybe?)

There was a brief respite when Trump announced a 90 day pause on tariffs sending the Nasdaq soaring. But even with that bounce the megacaps are still off their highs. Uncertainty is the name of the game and in the tech world that's a bit like coding in the dark. We'll have to wait and see how this all plays out. As I said in 1999 when I gave up my CEO role at Microsoft 'I am going to keep learning and keep contributing.' And I think everyone else should too especially when the market decides to have a bit of a tumble.