Donald Trump's new tariffs on foreign imports, including substantial rates for tech exporters from countries like China and Taiwan, are causing a major sell-off in tech stocks. The M7 stocks are experiencing drastic losses as the artificial intelligence sector braces for increased operational costs due to rising chip prices. The tariffs are expected to burden American AI companies, compounding their existing challenges of investor skepticism and disappointing revenues. A broader economic uncertainty looms as the stock market reacts strongly to these developments.
As a result, the magnificent seven (M7) stocks - a stock trader term for the current whales of the tech industry: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla - are in a freefall today.
Trump's tariffs will force countries from those companies to hike their chip prices, and US companies will no doubt hike their prices to compensate, which will ultimately run off to consumers.
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