Semiconductor Stocks Tumble, Wiping Out $100 Billion Amid US-China Trade Tensions: Rocky Start To 2024
Portfolio Pulse from Piero Cingari
U.S. semiconductor stocks have experienced a significant drop, with the top 25 U.S.-traded semiconductor companies losing nearly $100 billion in market value. This decline is attributed to escalating U.S.-China trade tensions, particularly after the White House directed a European chipmaker to halt shipments to China. Companies like NVIDIA and AMD saw declines of 4% and over 5%, respectively. ASML Holdings complied with the U.S. directive, causing its shares to fall by 4.3%. Despite this, ASML does not expect a significant impact on its 2023 financial outlook. The sector had a strong performance in 2023, but faces challenges at the start of 2024.
January 02, 2024 | 4:09 pm
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NEGATIVE IMPACT
Advanced Micro Devices Inc. experienced a sharp drop of over 5% in response to the increased trade tensions between the U.S. and China.
AMD's stock price is expected to face downward pressure in the short term due to the negative news affecting the semiconductor sector.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
ASML Holdings N.V.'s stock fell by 4.3% after complying with the U.S. directive to halt certain shipments to China, despite not expecting a significant impact on its 2023 financial outlook.
ASML is directly impacted by the trade tensions and its compliance with the U.S. directive, leading to a negative short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 95
NEGATIVE IMPACT
NVIDIA Corp. saw a 4% decline in its stock price due to the U.S.-China trade tensions affecting the semiconductor industry.
NVIDIA's stock price is likely to be negatively impacted in the short term due to the overall market sentiment against semiconductor stocks following the trade tension news.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
The iShares Semiconductor ETF, which tracks semiconductor stocks, may face challenges as the sector deals with the implications of a potential tech trade war.
SOXX is likely to experience short-term negative impact due to its exposure to the semiconductor industry, which is currently under pressure from trade tensions.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80