Chip stocks are facing selling pressure on Wednesday after NVIDIA Corp (NASDAQ:NVDA) announced that the U.S. government will start requiring a license to export chips to China.
While the first-quarter bottom-line result beat the 5.78-euro consensus estimate compiled by Finchat, revenue fell nearly in line with an estimate of 7.78 billion euros.
Trump plans to impose tariffs on imported semiconductors, but promises flexibility. Semiconductor stocks rise, but tariffs may impact demand and revenue.
Intel's hiring of Lip-Bu Tan as CEO has sparked controversy due to his investments in Chinese tech firms, including some tied to the PLA. This raises concerns for ETF investors over geopolitical and national security risks.
TSM has seen a 25% decline in stock value and a Death Cross pattern, while President Trump's recent threats of a 100% tax on the company add to the negative outlook. Investors may find more stability in ETFs such as SPY, SOXX, and SMH.
Intel Corporation (NASDAQ: INTC) is undergoing strategic shifts under new CEO Lip-Bu Tan, making ETFs with significant Intel holdings a potential investment opportunity.
Broadcom shares are trading lower by 5.2% Wednesday afternoon. Shares of chip stocks are trading lower amid overall market weakness, which may be due to tariff volatility.
We’re still not seeing leadership emerge from the right places, although it’s beyond interesting (and no coincidence) that stocks and crypto are now behaving similarly from a technical standpoint.
