Chip Stocks Like Nvidia, Broadcom, Taiwan Semi Gain After Trump Win - What's Going On?

Nvidia Corp NVDA, Broadcom Inc AVGO, Intel Corp INTC, Micron Technology, Inc MU, Arm Holdings plc ARM, ON Semiconductor Corp ON, Qualcomm Inc QCOM, Analog Devices, Inc ADI, Texas Instruments Inc TXN, Marvell Technology, Inc MRVL stocks are trading higher Wednesday after Donald Trump won the election for the 47th president.

The Biden administration had imposed an artificial intelligence technology embargo on China, restricting the country’s access to sophisticated AI chips from Nvidia, citing national security threats.

Nvidia maintained a lack of impact from the embargo as the U.S. Big Techs splurged on their AI ambitions.

Also Read: Taiwan Semiconductor Faces Rising Energy Costs, Potential Outages Threaten Production

Nvidia recently surpassed Apple in market value as the chip designer’s rapid growth, driven by AI-focused GPUs, has attracted significant tech investments from Microsoft Corp MSFT, Meta Platforms Inc META, Alphabet Inc GOOG GOOGL Google, and Amazon.Com Inc AMZN.

Taiwan Semiconductor Manufacturing Co TSM stock is trading lower on Wednesday in anticipation of higher tariffs.

Trump attacked Taiwan twice, claiming that the country undermined the U.S. chip industry.

He also criticized the CHIPS Act and pledged tariffs on Taiwanese chips if elected.

Analysts cautioned that tariffs could disrupt the global chip supply chain. Given the lack of a formal treaty, Trump questioned the U.S.’s defense stance with Taiwan and criticized federal CHIPS Act funding for foreign firms like Taiwan Semiconductor.

Wedbush Securities analyst Dan Ives projected that the upcoming $1 trillion in AI capital expenditures will add value to Nvidia.

Beth Kindig of I/O Fund predicts that Nvidia’s Blackwell chips could drive its valuation to $10 trillion next year.

Also Read:

• Applied Materials and Lam Research Shift Supply Chains Away from China to Meet New US Guidelines

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