Are you wondering what’s happening with Nvidia, AMD, and other semiconductor stocks on this Wednesday? Well, you’re in the right place for all the latest updates.
Chip stocks, including Nvidia Corp (NASDAQ: NVDA) and Advanced Micro Devices, Inc (NASDAQ: AMD), are experiencing a dip in trading today due to the U.S. increasing semiconductor sanctions against China. This move follows Presidential candidate Donald Trump’s recent criticism of major contract chipmaker Taiwan Semiconductor Manufacturing Company (NYSE: TSM).
The Biden administration is exploring the use of the Foreign Direct Product Rule (FDPR), allowing them to impose controls on products made overseas that contain even small amounts of American technology. Reports suggest that this possibility has been presented to officials in Tokyo and The Hague.
In addition to these developments, there are talks of imposing further sanctions on specific Chinese chip companies, which could have a significant impact on U.S. semiconductor companies with a substantial exposure to China. For example, previous reports indicated that Nvidia could sell $12 billion worth of AI chips in China this year despite existing export controls.
Former President Donald Trump’s recent comments have also sparked concerns within the semiconductor sector. Trump suggested during a recent interview that Taiwan Semiconductor should compensate the U.S. for its defense efforts, leading to a drop in Taiwan Semiconductor’s stock price.
As a result, the broader chip sector is seeing a decline in trading today, affecting companies like Broadcom Inc (NASDAQ: AVGO), Qualcomm Inc (NASDAQ: QCOM), Micron Technology Inc (NASDAQ: MU), and others. Investors looking to gain exposure to the semiconductor sector may consider options like ProShares Ultra Semiconductors (NYSE: USD) and Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ).
At the time of writing, Nvidia shares were down by 4.02% at $121.28. Stay updated with the latest stock analysis and news in the finance world by visiting our website, Extreme Investor Network, for more information.
Remember, the world of finance is ever-changing, so it’s essential to stay informed and make well-informed investment decisions. Stick with us for the latest updates and expert insights in the world of finance.