In recent weeks, experts have been concerned that Trump’s new tariffs on rivals and trade partners will lead to an economic slowdown in the coming months.
Last week, thematic and leveraged ETFs performed well, such as DJTU, LLYX, NFXL, DECO, and MSTY, despite market concerns. Tech sector was hit by geopolitical tension and hawkish central bank comments. Earnings were mixed, with UNH cutting its full-year forecast.
TSMC CEO C.C. Wei stated that the company remains aware of potential risks arising from recent tariff announcements, but noted that customer behavior has not changed, prompting the chipmaker to maintain its current forecasts.
U.S. major indices traded lower at midday Wednesday, pressured by sharp declines in tech and semiconductor stocks after Washington tightened chip export restrictions to China.
Piper Sandler cut its price target on Nvidia to $150 from $175, citing the surprise nature of the charge and the reduced outlook for data center products shipped to China.
Nvidia said that with the new licensing requirement, the government intends to address the risk that the covered products may be used in or diverted to a supercomputer in China.
Trump’s pledge comes after Nvidia announced on Monday that it is working with its manufacturing partners to build AI supercomputers and chipmaking capacity entirely within the U.S. for the first time.
Trump plans to impose tariffs on imported semiconductors, but promises flexibility. Semiconductor stocks rise, but tariffs may impact demand and revenue.
Citi said Nvidia can partially pass down the increased GPU cost that may emanate from the trade war, given its technology leadership and AI GPU price in-elasticity.
Intel's hiring of Lip-Bu Tan as CEO has sparked controversy due to his investments in Chinese tech firms, including some tied to the PLA. This raises concerns for ETF investors over geopolitical and national security risks.
