Here's Why AMD, Nvidia And Taiwan Semiconductor Shares Are Falling

Shares of several companies in the semiconductor sector, including Advanced Micro Devices, Inc. AMD, NVIDIA Corporation NVDA and Taiwan Semiconductor Mfg. Co. Ltd. TSM, are all trading lower amid a rise in U.S. Treasury yields as investors continue to weigh the Federal Reserve's rate hike outlook. A more aggressive rate hike approach to curb inflation could weigh on growth stocks.

Some analysts have also recently expressed concerns of slowing end markets, including PCs.

The 10-year U.S. Treasury yield is hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.660% Wednesday morning before dipping to around the 2.600% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.