US chip stocks plummeted on Thursday following President Trump’s announcement of sweeping reciprocal tariffs set to affect the semiconductor supply chain. Nvidia (NVDA) saw its stock drop over 7.5%, while rival Advanced Micro Devices (AMD) plummeted 8.9%. Broadcom (AVGO) and Micron (MU) also fell significantly, with shares dropping over 10% and 16%, respectively.
Taiwan’s TSMC, the leading producer of advanced computer chips for American companies such as Apple and AMD, dropped over 7%. The company has outsourced production due to the costs of operating chip manufacturing plants. US imports from Taiwan reached $19 billion in 2024, while China imported $34 billion worth of “computers” with Nvidia’s chips.
Analysts say that while the tariffs may not impact Nvidia and other AI chip stocks significantly, as they are racing to develop Artificial General Intelligence (AGI) at any cost, other semiconductor companies may be affected. The US will implement reciprocal tariff rates of 34% on China and 46% on Vietnam, starting April 9.
Despite Trump’s claims that tariffs would encourage domestic chip manufacturing, experts say it’s unclear whether this would actually happen. Conversations with manufacturers and distributors in the supply chain suggest they are unlikely to build or add capacity in the US due to concerns about tariffs sticking.
The impact of the tariffs on the economy and consumers is still unclear, but one thing is certain – chip stocks are taking a hit.
Source: https://finance.yahoo.com/news/nvidia-tsmc-chip-stocks-plunge-after-trump-announces-sweeping-reciprocal-tariffs-215957217.html