A poor market reception of Nvidia’s earnings and the specter of additional U.S. tariffs have knocked down Asian chip stocks, dragging Japan’s tech-heavy 225-issue Nikkei average down to its lowest level since September.

A Bloomberg gauge of 25 Japanese chip-related stocks sank as much as 4.5%, the biggest intraday fall since September, led by a 12% fall in Disco. Advantest plunged as much as 10% while Tokyo Electron lost 5.5% at one point.

In South Korea, SK Hynix and Samsung Electronics tumbled 4.8% and 2.3% respectively, while Taiwan’s market was closed for a holiday. In China, Nvidia supplier Foxconn Industrial Internet dropped as much as 4.3% while Hong Kong-listed Sunny Optical shed 5%.

Nvidia, the chipmaker at the center of an artificial intelligence (AI) spending boom, sank 8.5% in New York after warning that gross profit margins would be tighter than anticipated. Its quarterly sales will be about $43 billion, slightly above analysts’ estimates, it said. While the results were released Thursday morning in Asia, investors in the region haven’t had the chance to react to Nvidia’s full price action until Friday.

"Right now everyone is worried about investments in AI. Nvidia’s earnings were in line with expectations but fell short of dispelling those concerns,” said Mitsuhiro Shibata, senior strategist at Daiwa Securities.

Adding to the gloom was concern about a global trade war after U.S. President Donald Trump said 25% tariffs on Canada and Mexico are on track to go into place next week. He also said he would impose an additional 10% tax on Chinese imports.

"Compared with one month ago, hopes that he will eventually compromise have receded,” said Yoshiki Nagata, senior portfolio manager at Meiji Yasuda Asset Management.

Japan’s Nikkei fell more than 3% to the lowest level since Sept. 19. It closed down 2.88% at 37,155.50 on Friday.