Following stellar performance in 2023, U.S. semiconductor stocks have taken a hit at the start of 2024, with notable declines in Tuesday morning trading in New York. This downturn comes in the wake of the White House’s directive to a prominent European chipmaker, signaling escalating U.S.-China trade tensions.
What Happened: NVIDIA Corp. NVDA witnessed a decline of 4%, while Advanced Micro Devices Inc. AMD experienced a sharper drop of over 5%. Overall, the largest U.S.-traded 25 semiconductor companies have seen nearly $100 billion erased in market value in just the first trading hours of Tuesday.
Chart: Rocky Start To The Year For Major Chipmakers
As Bloomberg reported, Dutch chipmaker supplier ASML Holdings N.V ASML complied with U.S. President Joe Biden‘s request to halt certain shipments to China weeks ahead of a new export ban’s enforcement.
ASML, Europe's tech giant, confirmed the Dutch government partially revoked licenses for shipping specific lithography systems to China, impacting a few customers. Despite these developments, ASML believes the recent blockade won’t significantly affect its 2023 financial outlook. Shares of ASML Holding N.V. dropped by 4.3%, marking their weakest daily performance since late July.
Why It Matters: In 2023, semiconductor stocks, as tracked by the iShares Semiconductor ETF SOXX, closed with a 66% gain, the best since 2009’s 74% annual increase. Yet the onset of 2024 presents challenges as the market begins to weigh the risks of a potential new tech trade war and its negative influence on the sector’s growth.
US Chipmakers Wipe Out $100 Billion On 2024’s First Trading Day
| Name | Market Cap (in billions) | 1-Day % Change | 1-Day Market Cap Loss (in billions) |
|---|---|---|---|
| NVIDIA Corporation | $1,179.72 | -3.55% | -$41.93 |
| Advanced Micro Devices, Inc. | $225.22 | -5.43% | -$12.22 |
| Broadcom Inc. AVGO | $513.07 | -1.82% | -$9.32 |
| Intel Corporation | $203.19 | -4.09% | -$8.31 |
| Applied Materials, Inc. AMAT | $129.77 | -3.65% | -$4.74 |
| QUALCOMM Incorporated QCOM | $156.73 | -2.63% | -$4.13 |
| Lam Research Corporation LRCX | $99.26 | -3.85% | -$3.82 |
| Micron Technology, Inc. MU | $91.85 | -2.51% | -$2.30 |
| KLA Corporation KLAC | $76.92 | -2.94% | -$2.26 |
| Analog Devices, Inc. ADI | $96.74 | -1.83% | -$1.77 |
| NXP Semiconductors N.V. NXPI | $57.54 | -2.81% | -$1.62 |
| Texas Instruments Incorporated TXN | $153.21 | -1.03% | -$1.58 |
| Marvell Technology, Inc. MRVL | $50.75 | -2.67% | -$1.35 |
| Monolithic Power Systems, Inc. MPWR | $29.17 | -3.49% | -$1.02 |
| Microchip Technology Incorporated MCHP | $47.86 | -1.91% | -$0.91 |
| Entegris, Inc. ENTG | $17.19 | -4.43% | -$0.76 |
| Teradyne, Inc. TER | $16.16 | -2.58% | -$0.42 |
| ON Semiconductor Corporation ON | $35.60 | -1.04% | -$0.37 |
| Skyworks Solutions, Inc. SWKS | $17.64 | -1.88% | -$0.33 |
| Qorvo, Inc. QRVO | $10.67 | -2.70% | -$0.29 |
| Rambus Inc. RMBS | $7.08 | -3.55% | -$0.25 |
| MKS Instruments, Inc. MKSI | $6.72 | -2.31% | -$0.16 |
| Lattice Semiconductor Corporation LSCC | $9.37 | -1.64% | -$0.15 |
| Axcelis Technologies, Inc. ACLS | $4.11 | -3.24% | -$0.13 |
| Wolfspeed, Inc. WOLF | $5.49 | 0.74% | $0.04 |
| Sum | –$100.10 |
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