AI Earthquake: Semiconductors Suffer Worst Selloff In Years On Stricter US Chip Exports To China
Portfolio Pulse from Piero Cingari
The semiconductor sector is experiencing a significant selloff due to potential tightening of U.S. regulatory restrictions on chip exports to China. Major ETFs and individual stocks in the sector have seen substantial declines.
July 17, 2024 | 4:42 pm
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NEGATIVE IMPACT
Applied Materials, Inc. shares saw losses exceeding 7% due to potential U.S. regulatory restrictions on chip exports to China.
Applied Materials' significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Advanced Micro Devices Inc. shares fell 7.6%, testing the support of its 50-day moving average, due to potential U.S. regulatory restrictions on chip exports to China.
AMD's significant drop and technical testing reflect investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Arm Holdings plc shares tumbled 8% amid concerns over potential U.S. regulatory restrictions on chip exports to China.
Arm's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
ASML Holdings NV shares fell over 11% as the company is a primary target of potential U.S. chip export restrictions to China.
ASML's significant exposure to the Chinese market makes it highly vulnerable to potential U.S. regulatory changes.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Broadcom Inc. shares decreased by 6% amid concerns over potential U.S. regulatory restrictions on chip exports to China.
Broadcom's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Lam Research Corporation shares saw losses exceeding 7% due to potential U.S. regulatory restrictions on chip exports to China.
Lam Research's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Marvell Technology, Inc. shares saw losses exceeding 7% due to potential U.S. regulatory restrictions on chip exports to China.
Marvell's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Nvidia Corp. shares dropped 5.6% amid concerns over potential U.S. regulatory restrictions on chip exports to China.
Nvidia's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Qualcomm Inc. shares decreased by 6% amid concerns over potential U.S. regulatory restrictions on chip exports to China.
Qualcomm's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
The VanEck Semiconductor ETF (SMH) declined 5.5% due to potential U.S. regulatory restrictions on chip exports to China.
The ETF's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares Semiconductor ETF (SOXX) dropped 5.4% amid concerns over stricter U.S. chip export regulations to China.
The ETF's significant drop reflects investor concerns over potential regulatory changes impacting the semiconductor sector.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Taiwan Semiconductor Manufacturing shares declined 6.2% following reports of U.S. presidential candidate Donald Trump's comments on Taiwan compensating the U.S. for its defense.
TSM's drop reflects investor concerns over geopolitical tensions and potential regulatory changes.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Intel Corp. shares rose 2.4%, one of the few major chipmakers trading in the green amid sector-wide declines.
Intel's rise suggests it may be less exposed to the potential regulatory changes compared to other semiconductor companies.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Texas Instruments Inc. shares rose 0.7%, one of the few major chipmakers trading in the green amid sector-wide declines.
Texas Instruments' rise suggests it may be less exposed to the potential regulatory changes compared to other semiconductor companies.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50