Semiconductor and major technology stocks declined on Friday as investors weighed new U.S. export policy discussions and rising geopolitical tensions tied to the U.S.–Israel conflict with Iran.
Chip And Tech Stocks Slide
PHLX Semiconductor Index is down over 2%. The tech-heavy NASDAQ Composite Index is down close to 2%.
Policy Changes And Geopolitical Risks Pressure Sector
Regulatory discussions in Washington and rising tensions in the Middle East added to uncertainty across the semiconductor industry.
The Trump administration is reportedly considering a new framework to regulate exports of advanced AI chips from companies such as Nvidia and AMD.
Under the proposal, countries seeking large shipments—particularly 200,000 chips or more—may need to invest in U.S.-based AI data centers or provide government-level security guarantees.
The draft framework could also require licenses for smaller installations, chip usage monitoring, and software restrictions to prevent chips from being connected to large computing clusters.
At the same time, escalating tensions in the U.S.–Iran conflict are raising concerns about semiconductor supply chains.
South Korean lawmakers warned that disruptions in the Middle East could threaten access to key materials used in chip manufacturing, including helium, which is critical for heat management during production and currently has no viable substitute.
Chipmakers are monitoring the situation closely.
SK Hynix said it has secured diversified supply chains and sufficient helium inventory.
In contrast, Taiwan Semiconductor said it does not expect significant disruption for now but continues to track developments.
GlobalFoundries Inc (NASDAQ:GFS) said it is coordinating with suppliers and partners and has mitigation plans in place.
Industry officials also warned that escalating tensions could slow AI data center expansion in the Middle East.
Amazon.com Inc (NASDAQ:AMZN) said drone strikes recently damaged some of its data centers in the United Arab Emirates and Bahrain, raising questions about the pace of technology infrastructure development in the region.
Cramer Urges Calm As Investor Buys Nvidia
CNBC’s Jim Cramer urged investors to stay cautious and avoid panic selling during the recent semiconductor selloff driven by geopolitical tensions and tech-sector volatility.
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