TSMC CEO C.C. Wei stated that the company remains aware of potential risks arising from recent tariff announcements, but noted that customer behavior has not changed, prompting the chipmaker to maintain its current forecasts.
U.S. major indices traded lower at midday Wednesday, pressured by sharp declines in tech and semiconductor stocks after Washington tightened chip export restrictions to China.
Piper Sandler cut its price target on Nvidia to $150 from $175, citing the surprise nature of the charge and the reduced outlook for data center products shipped to China.
Nvidia said that with the new licensing requirement, the government intends to address the risk that the covered products may be used in or diverted to a supercomputer in China.
Trump’s pledge comes after Nvidia announced on Monday that it is working with its manufacturing partners to build AI supercomputers and chipmaking capacity entirely within the U.S. for the first time.
Trump plans to impose tariffs on imported semiconductors, but promises flexibility. Semiconductor stocks rise, but tariffs may impact demand and revenue.
Citi said Nvidia can partially pass down the increased GPU cost that may emanate from the trade war, given its technology leadership and AI GPU price in-elasticity.
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.
Stock futures tumbled on Tuesday evening as markets braced for President Donald Trump's 104% tariff on Chinese imports taking effect at 12:01 a.m. ET Wednesday, erasing a brief relief rally and sending major indexes to significant lows.
U.S. stocks staged a broad-based rally on Monday, snapping a volatile losing streak after President Donald Trump hinted at a more diplomatic approach to tariff negotiations.
U.S. stocks surge after Trump hints at trade progress, easing fears of disruption. S&P 500 up 3%, tech-heavy Nasdaq 100 outperforms. Semiconductors lead sector rally.
