Chip Stocks Extend Sell-Off Amid Tariffs and Export Controls

Semiconductor Stock Sell-Off

• 📉 The semiconductor stock sell-off is extending, with the SMH index down 1% today and over 4% this week.
• ⚠️ This decline is attributed to tariffs and tighter export controls impacting the industry.

Nvidia's Challenges

• 💡 Nvidia is a major drag on the NASDAQ 100, facing a $5.5 billion write-off due to new licensing rules for China AI chips.
• 🔍 Congress is investigating Nvidia's correspondence with Chinese startup Deep Seek regarding potential chip diversion to China.
• 🗣️ Nvidia's CEO Jensen Wong is currently in Beijing meeting with trade officials, with a spokesperson stating they "regularly meet with government leaders to discuss our products and technology."

Broadcom, Intel, and TSMC

• 💰 Broadcom shares are also lower, with investors anticipating similar license requirements due to their ByteDance business.
• 🔌 Intel is down and will require licenses for AI chips to China, though their AI chips have not gained significant traction there.
• 🤝 TSMC is reportedly denying rumors of a joint venture with Intel.

TSMC's Outlook and Analyst Concerns

• 📈 TSMC is holding steady after reaffirming its 2025 growth outlook, stating no customer impact from US tariff announcements.
• ⚠️ However, some Wall Street analysts remain unconvinced, warning it's too early to assess the full tariff impact and expecting cautious guidance this earnings season.