Chip Stocks Volatile as US-China Semiconductor Tensions Escalate
Curated by THEOUTPOST
On Fri, 19 Jul, 8:00 AM UTC
3 Sources
3 Sources
[1]
Chip stocks volatile with China-US spat in focus
NEW YORK/SINGAPORE, July 18 (Reuters) - Trading in U.S. chip stocks was choppy on Thursday with the Philadelphia semiconductor index (.SOX), opens new tab managing to close higher after tumbling on Wednesday with its biggest contributions from a handful of heavyweights Nvidia (NVDA.O), opens new tab and Broadcom . Chip stocks in Asia had sold-off earlier in Thursday after a report that the United States was considering tighter curbs on exports of advanced chip technology to China. Bloomberg News had reported that U.S. President Joe Biden's administration was weighing a measure called the foreign direct product rule that would allow the U.S. to stop a product from being sold if it was made using American technology. After the report the Global X Asia Semiconductor exchange-traded fund (3119.HK), opens new tab closed down 1.74% on Thursday with declines in major holdings including SK Hynix (000660.KS), opens new tab, Tokyo Electron, Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW), opens new tab, and Samsung Electronics (005930.KS), opens new tab. The Philadelphia Semiconductor index had fallen 6.8% on Wednesday for its weakest day since March 2020. The index had opened up 1.7% on Thursday before falling more than 1% at its low for the day and then closing the session up 0.5%. Its biggest boosts were from Broadcom, up 2.9%, and Nvidia up 2.6%. Their gains helped offset declines in stocks such as Advanced Micro Devices (AMD.O), opens new tab, which closed down 2.2% after falling more than 10% on Wednesday, in its biggest sell-off since October 2022. Some analysts cited Wednesday's sell-off as a signal to bargain hunt. Vedvati Shrotre at Evercore ISI wrote that the near-term probability the trade curbs would be implemented is low and pointed to "near-term weakness as a unique buying opportunity." Also Vivek Arya at Bofa cited current volatility as "enhanced opportunity in companies with best-profitability." But Daniel Morgan, portfolio manager at Synovus Trust expects more volatility ahead with chip company earnings due in coming weeks and both U.S. Presidential candidates, Donald Trump and Joe Biden, "taking a tough line" on trade. "What you were seeing is buying on the weakness and then investors coming to the awareness that this is going to be a recurring concern as we head into the reporting season, that companies with a high level of sales exposure to China may be hurt," said Atlanta, Georgia based Morgan. He pointed to an almost 11% tumble in shares of ASML (ASML.AS), opens new tab on Wednesday to illustrate worries about chip companies that disclose big exposure to China. Investors overlooked strong results at ASML, the biggest supplier of computer chip- making equipment, because roughly half its sales came from China, Morgan said. But he noted that investors were equally worried about Trump implementing tariffs when he was President yet "chip companies have survived and have done extremely well since then." Some of Thursday's volatility may have been caused by investor fears that U.S. presidential candidate Donald Trump would make comments about trade in a speech scheduled for later in the day, said Gene Goldman, chief investment officer at Cetera Investment Management, El Segundo, CA "He may suggest more tariffs, which is a concern for technology companies," said Goldman. TSMC, the world's largest contract chipmaker, has already come under pressure from comments from Trump who said earlier this week that Taiwan "did take about 100% of our chip business" and should pay the U.S. for its defence. On Thursday TSMC showed some of the biggest declines in Asia, shedding T$1.7 trillion ($52.1 billion) market value in two days. But the manufacturer's U.S. traded shares closed up 0.4% on Thursday. It likely helped that TSMC, the world's largest contract chipmaker, raised its full-year revenue forecast on Thursday on surging artificial intelligence (AI) related demand for chips. In Europe ASML shares had closed down 3.6% in Europe on Thursday while its U.S. listed shares ended down 0.9%. In Asia, South Korean memory chipmaker SK Hynix had also slid 3.6% while Japan's Tokyo Electron, had slumped 8.75%. Reporting by Sinéad Carew and Saqib Iqbal Ahmed in New York, Youn Ah Moon and Joyce Lee in Seoul, Jeanny Kao in Taipei, Ankur Banerjee in Singapore and Alun John in London; Writing by Rae Wee; Editing by David Evans and Stephen Coates Our Standards: The Thomson Reuters Trust Principles., opens new tab
[2]
Chip stocks volatile with China-US spat in focus
* Asia chip stocks extend heavy selloff, U.S. trading choppy * TSMC closes down, posts better-than-expected earnings (Updates prices, adds comments after U.S. stock market close) NEW YORK/SINGAPORE, July 18 (Reuters) - Trading in U.S. chip stocks was choppy on Thursday with the Philadelphia semiconductor index managing to close higher after tumbling on Wednesday with its biggest contributions from a handful of heavyweights Nvidia and Broadcom. Chip stocks in Asia had sold-off earlier in Thursday after a report that the United States was considering tighter curbs on exports of advanced chip technology to China. Bloomberg News had reported that U.S. President Joe Biden's administration was weighing a measure called the foreign direct product rule that would allow the U.S. to stop a product from being sold if it was made using American technology. After the report the Global X Asia Semiconductor exchange-traded fund closed down 1.74% on Thursday with declines in major holdings including SK Hynix, Tokyo Electron, Taiwan Semiconductor Manufacturing Co (TSMC) , and Samsung Electronics. The Philadelphia Semiconductor index had fallen 6.8% on Wednesday for its weakest day since March 2020. The index had opened up 1.7% on Thursday before falling more than 1% at its low for the day and then closing the session up 0.5%. Its biggest boosts were from Broadcom, up 2.9%, and Nvidia up 2.6%. Their gains helped offset declines in stocks such as Advanced Micro Devices, which closed down 2.2% after falling more than 10% on Wednesday, in its biggest sell-off since October 2022. Some analysts cited Wednesday's sell-off as a signal to bargain hunt. Vedvati Shrotre at Evercore ISI wrote that the near-term probability the trade curbs would be implemented is low and pointed to "near-term weakness as a unique buying opportunity." Also Vivek Arya at Bofa cited current volatility as "enhanced opportunity in companies with best-profitability." But Daniel Morgan, portfolio manager at Synovus Trust expects more volatility ahead with chip company earnings due in coming weeks and both U.S. Presidential candidates, Donald Trump and Joe Biden, "taking a tough line" on trade. "What you were seeing is buying on the weakness and then investors coming to the awareness that this is going to be a recurring concern as we head into the reporting season, that companies with a high level of sales exposure to China may be hurt," said Atlanta, Georgia based Morgan. He pointed to an almost 11% tumble in shares of ASML on Wednesday to illustrate worries about chip companies that disclose big exposure to China. Investors overlooked strong results at ASML, the biggest supplier of computer chip- making equipment, because roughly half its sales came from China, Morgan said. But he noted that investors were equally worried about Trump implementing tariffs when he was President yet "chip companies have survived and have done extremely well since then." Some of Thursday's volatility may have been caused by investor fears that U.S. presidential candidate Donald Trump would make comments about trade in a speech scheduled for later in the day, said Gene Goldman, chief investment officer at Cetera Investment Management, El Segundo, CA "He may suggest more tariffs, which is a concern for technology companies," said Goldman. TSMC, the world's largest contract chipmaker, has already come under pressure from comments from Trump who said earlier this week that Taiwan "did take about 100% of our chip business" and should pay the U.S. for its defence. On Thursday TSMC showed some of the biggest declines in Asia, shedding T$1.7 trillion ($52.1 billion) market value in two days. But the manufacturer's U.S. traded shares closed up 0.4% on Thursday. It likely helped that TSMC, the world's largest contract chipmaker, raised its full-year revenue forecast on Thursday on surging artificial intelligence (AI) related demand for chips. In Europe ASML shares had closed down 3.6% in Europe on Thursday while its U.S. listed shares ended down 0.9%. In Asia, South Korean memory chipmaker SK Hynix had also slid 3.6% while Japan's Tokyo Electron, had slumped 8.75%. (Reporting by Sinéad Carew and Saqib Iqbal Ahmed in New York, Youn Ah Moon and Joyce Lee in Seoul, Jeanny Kao in Taipei, Ankur Banerjee in Singapore and Alun John in London; Writing by Rae Wee; Editing by David Evans and Stephen Coates)
[3]
Chip stocks volatile with China-US spat in focus
Bloomberg News had reported that U.S. President Joe Biden's administration was weighing a measure called the foreign direct product rule that would allow the U.S. to stop a product from being sold if it was made using American technology. After the report the Global X Asia Semiconductor exchange-traded fund closed down 1.74% on Thursday with declines in major holdings including SK Hynix, Tokyo Electron, Taiwan Semiconductor Manufacturing Co (TSMC), and Samsung Electronics. The Philadelphia Semiconductor index had fallen 6.8% on Wednesday for its weakest day since March 2020. The index had opened up 1.7% on Thursday before falling more than 1% at its low for the day and then closing the session up 0.5%. Its biggest boosts were from Broadcom, up 2.9%, and Nvidia up 2.6%. Their gains helped offset declines in stocks such as Advanced Micro Devices, which closed down 2.2% after falling more than 10% on Wednesday, in its biggest sell-off since October 2022. Some analysts cited Wednesday's sell-off as a signal to bargain hunt. Vedvati Shrotre at Evercore ISI wrote that the near-term probability the trade curbs would be implemented is low and pointed to "near-term weakness as a unique buying opportunity." Also Vivek Arya at Bofa cited current volatility as "enhanced opportunity in companies with best-profitability." But Daniel Morgan, portfolio manager at Synovus Trust expects more volatility ahead with chip company earnings due in coming weeks and both U.S. Presidential candidates, Donald Trump and Joe Biden, "taking a tough line" on trade. "What you were seeing is buying on the weakness and then investors coming to the awareness that this is going to be a recurring concern as we head into the reporting season, that companies with a high level of sales exposure to China may be hurt," said Atlanta, Georgia based Morgan. He pointed to an almost 11% tumble in shares of ASML on Wednesday to illustrate worries about chip companies that disclose big exposure to China. Investors overlooked strong results at ASML, the biggest supplier of computer chip- making equipment, because roughly half its sales came from China, Morgan said. But he noted that investors were equally worried about Trump implementing tariffs when he was President yet "chip companies have survived and have done extremely well since then." Some of Thursday's volatility may have been caused by investor fears that U.S. presidential candidate Donald Trump would make comments about trade in a speech scheduled for later in the day, said Gene Goldman, chief investment officer at Cetera Investment Management, El Segundo, CA "He may suggest more tariffs, which is a concern for technology companies," said Goldman. TSMC, the world's largest contract chipmaker, has already come under pressure from comments from Trump who said earlier this week that Taiwan "did take about 100% of our chip business" and should pay the U.S. for its defence. On Thursday TSMC showed some of the biggest declines in Asia, shedding T$1.7 trillion ($52.1 billion) market value in two days. But the manufacturer's U.S. traded shares closed up 0.4% on Thursday. It likely helped that TSMC, the world's largest contract chipmaker, raised its full-year revenue forecast on Thursday on surging artificial intelligence (AI) related demand for chips. In Europe ASML shares had closed down 3.6% in Europe on Thursday while its U.S. listed shares ended down 0.9%. In Asia, South Korean memory chipmaker SK Hynix had also slid 3.6% while Japan's Tokyo Electron, had slumped 8.75%. (Reporting by Sinéad Carew and Saqib Iqbal Ahmed in New York, Youn Ah Moon and Joyce Lee in Seoul, Jeanny Kao in Taipei, Ankur Banerjee in Singapore and Alun John in London; Writing by Rae Wee; Editing by David Evans and Stephen Coates)
Share
Share
Copy Link
Global chip stocks experience volatility amid intensifying US-China tensions over semiconductor technology. The ongoing dispute impacts Asian tech markets and raises concerns about the future of the global chip industry.
US-China Chip War Intensifies
The global semiconductor industry is facing increased turbulence as tensions between the United States and China continue to escalate. Recent developments have sent shockwaves through Asian tech markets, with chip stocks experiencing significant volatility 1.
Impact on Asian Tech Stocks
Asian tech stocks, particularly those in the semiconductor sector, have taken a hit as the US-China chip war deepens. The MSCI index of Asian tech stocks outside Japan fell by 1.5%, while Taiwan's stock market, home to major chip manufacturer TSMC, saw a decline of 1.2% 1.
Key Players Affected
Several prominent chip manufacturers have found themselves at the center of this geopolitical storm. TSMC, the world's largest contract chipmaker, experienced a 1% drop in its stock price. Other major players in the industry, such as South Korea's Samsung Electronics and SK Hynix, also saw their shares decline by 0.3% and 1.9% respectively 2.
US Export Controls and China's Response
The volatility in chip stocks can be attributed to the ongoing dispute between the US and China over semiconductor technology. The United States has implemented export controls aimed at limiting China's access to advanced chip technology, citing national security concerns. In response, China has announced export controls on critical minerals used in chip production, escalating the tensions further 3.
Global Supply Chain Concerns
The intensifying chip war has raised concerns about disruptions to the global semiconductor supply chain. As both the US and China implement restrictive measures, industry experts worry about the potential impact on chip production and availability worldwide. This uncertainty has contributed to the volatility in chip stocks and has left investors cautious about the sector's future 2.
Market Reactions and Analyst Perspectives
Market analysts are closely monitoring the situation, with many expressing concern about the long-term implications of the US-China chip dispute. Some experts believe that the ongoing tensions could lead to a bifurcation of the global semiconductor industry, with separate supply chains emerging for Chinese and non-Chinese markets 1.
Future Outlook
As the situation continues to evolve, the semiconductor industry faces an uncertain future. The outcome of this geopolitical standoff between the US and China will likely have far-reaching consequences for chip manufacturers, tech companies, and consumers worldwide. Stakeholders in the industry are closely watching for any signs of de-escalation or further restrictive measures from either side 3.
Reference
[2]
[3]
Chip Stocks Experience Volatility Amid Market Uncertainty and Political Factors
Semiconductor stocks faced a rollercoaster ride on Monday, with initial drops followed by a rebound. The fluctuations were influenced by profit-taking, U.S. political uncertainty, and ongoing discussions about AI chip demand.
5 Sources
5 Sources
ASML and TSMC Face Geopolitical Challenges Amid Strong Earnings
ASML and TSMC, key players in the semiconductor industry, are navigating geopolitical tensions between the US and China. Despite strong earnings, their shares face pressure due to potential tighter export controls.
9 Sources
9 Sources
Nvidia and Chip Stocks Face Volatility Amid Economic Concerns
Nvidia and other chip stocks experience fluctuations following a significant sell-off. Investors grapple with recession fears and concerns about the sustainability of the AI-driven rally in the tech sector.
9 Sources
9 Sources
Global Chip Stocks Tumble as Intel's Disappointing Performance Sparks Industry-Wide Concerns
Semiconductor stocks face a significant downturn following Intel's weak quarterly results and job cut announcements. The ripple effect impacts major players like Nvidia, ASML, and AMD, raising questions about the chip industry's near-term outlook.
4 Sources
4 Sources
Chip Stocks Rally on Strong Earnings and Easing Geopolitical Tensions
Semiconductor stocks experience a significant surge, driven by positive earnings reports and reduced concerns over chip export restrictions. Industry giants like AMD and Nvidia lead the rally, marking the sector's strongest performance in months.
6 Sources
6 Sources
Your one-stop AI hub
The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
The Outpost
Keep in touch
© 2025 TheOutpost.AI All rights reserved