Nvidia, Broadcom, and Marvell, Three Major Chipmakers, Saw Eser Stock Prices Drop on Friday. This Happened After President Donald Trump Announounce New Tariffs On Goods From China and Taiwan, Raising Fears About Trade Tensions and Potential Disruptions in The Technology Supply Chain.
Investors reacted Strongly to the idea of increased costs for us companies that depend on manufacturing in Asia.
Under the New Tariffs, China Has Total Rate of 54%, While Taiwan Faces to 32% Reciprocal Tariff. These Measures Put Additional Pressure On Leading Suppliers of Ai Chips, Gpus, and Other Advanced Semiconductors.
NVIDIA RELIES HEAVILY ON TAIWAN SEMICONDUCTOR MANUFACTURING CO. (TSMC) FOR ITS TOP-TIER CHIPS AND OWES A BIG PART OF ITS SALES TO CHINA. STIs Stock Dropped More than 5% During the Day. Broadcom’s Stock Fell Even More, Down 7%, Due to Concerns About its Strong Ties To The Chinese Market, Which Makes Up About 20% of its Revenue.
Marvel Technology and Other Semiconductor Companies Also Lost Value as Worries Grew About Slowing Demand and Shrinking Profit Margins.
The New Tariffs aim to finding more semiconductor manufacturing in the US, but experts wery they might create instability in the short term. Higher Costs for Ai Servers, Chips, and Related Equipment Could reduces demand from Businesses and Slow Down Innovation.
While Biden and Trump Administrations have promoted investing in domestic chip production, Big Companies Like TSMC and Nvidia Currently Have FEW OPTIONS BEYOND ESTABLISHED ASIAN SUPPLY CHAINS.
Right Now, The Markets are preparing for UPS and Downs as Investors Think about the Long-Trm Impact of Rising Costs, Supply Chain Risks, and possessable RetaliTathoRary Tariffs from China. Sub Analysts Believe There Will Still Be Strong Demand For Key AI Components, Given The Importance of This Sector.
However, Expectations for the Earnings and Growth of Chipmakers Have Become More Cautious. As Traile Tensions and Barriers increased, The Semiconductor Industry Faces A Crucial Challenge That Coung the Landscape of Global Technology for Years.
