Leading semiconductor stocks including Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing Co. are down on June 20 as reports emerge that the US government may further restrict the export of microchip and semiconductor technology to China.
The US Commerce Department is considering terminating waivers that allow some chipmakers to send American technology to factories in China, including those based in Taiwan. This move comes amid a tense trade battle between the US and China, with controls around microchips and semiconductors being a sticking point.
The potential restrictions could impact global sales for US chipmakers like Nvidia and Broadcom, limiting their ability to sell advanced artificial intelligence (AI) chips into China due to national security concerns. Nvidia recently reported that current export restrictions on its China-bound microchips cost the company around $8 billion in lost sales.
Analysts have mixed views on Nvidia’s stock, with a Strong Buy rating from 40 Wall Street analysts and an average price target of $173.19 implying 19.05% upside from current levels.
Source: https://www.tipranks.com/news/nvda-tsmc-avgo-chip-stocks-fall-on-reports-u-s-may-further-restrict-exports-to-china