Advanced Micro Devices, Broadcom, and Micron Technology wavered Thursday after suffering another blow from President Donald Trump's trade policy and despite analysts lowering estimates due to restrictions on artificial-intelligence chips to China.

AMD stock traded 1.3% lower on Thursday. That follows a 7.4% drop Wednesday after news broke that U.S. exports of certain AI chips would now be subject to new licensing requirements.

While not an outright ban, it appears no licenses have been granted.

Broadcom stock fell 1.5% to $172, and Micron stock dropped 2.45% to $67.64; Nvidia stock slid 3.7% to $100.62.

This week, the first shots were fired in the trade war in the tech world, Wedbush analyst Daniel Ives wrote Thursday. "This is just the beginning of what is going to be a long and drawn-out process between the U.S. and China with 145% reciprocal tariffs now in place and the Street/market now waiting for any signs or tea leaves of some negotiations to kick off, " he said.

"Nvidia and U.S. Big Tech [are] caught in the eye of this Category 5 storm."

Products in the export restrictions would include AMD's MI308, Nvidia's H20, as well as any other chips with similar memory or bandwidth.

AMD said it expects to apply for licenses, but there are no assurances they'll be granted. The company also predicted an $800 million hit for inventory, purchase commitments, and related reserves.

"Clearly, we may need to wait for the Trump administration to finish its tariff and regulatory exploits before shares of Nvidia (and any semis company with sales into China) can get relief," Melius analysts led by Ben Reitzes wrote. "However, it will be good to finally get this China sales overhang behind us," Melius added, referring to the event as "whiplash strik[ing] again."

KeyBanc analyst John Vinh lowered his 2025 estimates on AMD revenue and earnings per share by 7% and 13%, respectively, due to the export restrictions, maintaining a Sector Weight rating on shares.

On the flip side, Jefferies analysts led by Blayne Curtis highlighted multiple positive signals for AI demand, however, "don't see [Nvidia] stock working until these AI rules and tariff impacts are better understood."

The iShares Semiconductor exchange-traded fund has dropped over 20% and was slightly down again early Thursday.

An earnings report from chip maker Taiwan Semiconductor Manufacturing early Thursday also helped ease worries around chip tariffs. Demand for TSMC's products outside of China remains "really strong," Chief Financial Officer Wendell Huang said in a statement.