Why Artificial Intelligence Stocks SoundHound AI, IonQ, and C3.ai Are Struggling Today
Shares of several technology and artificial intelligence (AI) stocks struggled today, due to reports of further export controls and as signs of a weakening consumer continue to rattle the broader market. The Nasdaq Composite had fallen nearly 1.1% as of 1:38 p.m. ET. Shares of SoundHound AI (NASDAQ: SOUN) and IonQ (NYSE: IONQ) traded 6.2% and 6.4% lower, respectively. Shares of C3.ai (NYSE: AI) were down 3.7%.Tech stocks bore the brunt of the sell-off today after multiple media outlets reported that President Donald Trump's administration plans to expand chip controls largely aimed at China. Former President Joe Biden had taken measures on this matter. Right before leaving office, Biden proposed tougher chip controls that are technically set to go into effect within a few months.Bloomberg, citing anonymous sources, reported today that officials in the Trump administration recently held meetings with officials in Japan and the Netherlands about preventing companies like Tokyo Electron and ASML Holding from storing gear used to make chips in China. There have also been discussions about preventing a wider range of chips made by Nvidia from getting into the hands of Chinese companies. Officials ramped up these proposals following the emergence of DeepSeek, which allegedly used older Nvidia chips to make a powerful AI chatbot much cheaper and with far fewer resources than thought possible.Continue reading
Shares of several technology and artificial intelligence (AI) stocks struggled today, due to reports of further export controls and as signs of a weakening consumer continue to rattle the broader market. The Nasdaq Composite had fallen nearly 1.1% as of 1:38 p.m. ET. Shares of SoundHound AI (NASDAQ: SOUN) and IonQ (NYSE: IONQ) traded 6.2% and 6.4% lower, respectively. Shares of C3.ai (NYSE: AI) were down 3.7%.
Tech stocks bore the brunt of the sell-off today after multiple media outlets reported that President Donald Trump's administration plans to expand chip controls largely aimed at China. Former President Joe Biden had taken measures on this matter. Right before leaving office, Biden proposed tougher chip controls that are technically set to go into effect within a few months.
Bloomberg, citing anonymous sources, reported today that officials in the Trump administration recently held meetings with officials in Japan and the Netherlands about preventing companies like Tokyo Electron and ASML Holding from storing gear used to make chips in China. There have also been discussions about preventing a wider range of chips made by Nvidia from getting into the hands of Chinese companies. Officials ramped up these proposals following the emergence of DeepSeek, which allegedly used older Nvidia chips to make a powerful AI chatbot much cheaper and with far fewer resources than thought possible.
