Technology stocks declined Wednesday, led by a 6% drop in Nvidia, as the chipmaking sector signaled that President Donald Trump's sweeping tariff plans could hamper demand and growth.

Nvidia revealed in a filing Tuesday that it will take a $5.5 billion charge tied to exporting its H20 graphics processing units to China and other countries and said that the government will require a license to ship the chips there and other destinations.

President Donald Trump urged lawmakers Tuesday night during his first joint address to Congress of his second term to repeal the CHIPS and Science Act.

The $280 billion bill, passed with bipartisan support and signed into law by former President Joe Biden in 2022, provided $52 billion for U.S. companies to produce computer chips that were in critical demand, as well as tens of billions more to boost semiconductor manufacturing, advance scientific research, and combat China by strengthening U.S. competitiveness.

Chip giant Taiwan Semiconductor Manufacturing Co. plans to invest $100 billion in the United States, President Donald Trump said Monday, on top of $65 billion in investments the company had previously announced.

TSMC, the world’s biggest semiconductor manufacturer, produces chips for companies including Apple, Intel and Nvidia. The company had already begun constructing three plants in Arizona after the Biden administration offered billions in subsidies. Its first factory in Arizona has started mass production of its 4-nanometer chips.

President Trump’s threat to use steep tariffs to break up what critics say is a virtual monopoly on the production of advanced microchips could become a reality in a matter of days, but Taiwan has dispatched a high-powered economic delegation to Washington this week in a bid to persuade the administration to change course.