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Semiconductor stocks tumbled on Monday as President Donald Trump’s tariffs on Mexico, Canada, and China intensified trade tensions, sparking investor uncertainty.
Key Market Moves
- Nvidia (NVDA): Down 2%
- AMD (AMD): Down 1.6%
- Broadcom (AVGO): Down 2%
- Qualcomm (QCOM): Down 1.9%
- Texas Instruments (TXN): Down 1.4%
- Intel (INTC): Down 1.4%
- TSMC: Down 2.6%
- ASML: Down 2%
- Arm Holdings: Down 3%
- iShares Semiconductor ETF (SOXX): Down 2.2%
Why Are Chip Stocks Falling?
- Tariff Shock
- Higher costs on semiconductors & components.
- Disruptions to supply chains, especially for global chipmakers.
- Trade War Concerns
- Trump signaled tariffs on Europe could be next, raising broader economic risks.
- Semiconductor supply chains rely on cross-border production, making them highly vulnerable to tariffs at multiple stages.
- Investor Uncertainty
- Market sell-off reflects concerns over supply chain bottlenecks.
- Potential for higher production costs & logistical challenges in the tech sector.
Market Outlook
Future trade policy decisions from the White House.
Short-Term: Continued volatility as investors assess tariff impacts.
Long-Term: Potential shifts in supply chains, as chipmakers explore alternative manufacturing strategies to mitigate tariff risks.
Key Watchpoints:
Possible U.S.-EU tariffs and their impact on European chipmakers.
China’s reaction after its Lunar New Year market reopening.
