March 4 - Stock prices for semiconductors dropped sharply on Monday after investors faced two issues: supply chain bypass activities by China and U.S. trade taxes becoming more likely. The Nvidia (NVDA, Financial) stock price afforded investors more than an 8.5% decrease from its peak in January, which resulted in a shift to bear market classification. Sources from the industry have found that Chinese customers evade export restrictions through third-party brokers located in Malaysia and Taiwan alongside Vietnam. Singapore's government started a probe into suspicious trading methods, which deepened the market uncertainty.
The performance of Broadcom (AVGO, Financial), along with AMD (AMD, Financial) and Marvell (MRVL, Financial), declined sharply when stock market demands surged. Taiwan Semiconductor's (TSM, Financial) stock prices dropped by more than 4%, although President Trump made public notice of investing $100 billion in U.S. manufacturing in the coming years. Taiwan Semiconductor persists as the dominant force in the global foundry business, while Intel experienced a 4% share decrease after Apple (AAPL, Financial) and AMD announced their major partnership with the company.
The situation became more unstable when President Trump declared his commitment to impose 25% tariffs on Mexican and Canadian imports starting Tuesday with no signs of future dialogue. Trade policy changes and uncertain supply chains sent all major U.S. stock indices, including Dow Jones, Nasdaq and S&P 500, into turmoil.
This article first appeared on GuruFocus.免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。