The chip sector has significantly weakened, with the PHLX Semiconductor Index plummeting 4%. Among the component stocks, GigaDevice surprisingly rose nearly 7%, while Intel rose slightly. Meanwhile, President Trump mentioned recently that because all of America's chip business had been "stolen" and received no benefit, Taiwan should pay "defense fees".
As of the close of the U.S. stock market on Wednesday, July 18th, $S&P 500 Index (.SPX.US)$tech stocks led a drop of over 1%, $Nasdaq Composite Index (.IXIC.US)$nearly 3%.
Investors continue to shift away from tech stocks, and the plummeting of the tech "Big Seven" dragged down two major indices. Analysis suggests that as the probability of an interest rate reduction rises, small-cap stocks, with their long-term lagging performance, may have a chance to gain a boost.
The U.S. chip sector has significantly weakened, with component stock ASML Holding plummeting more than 11%. Before market opening, ASML Holding forecasted Q3 sales of between 6.7 billion and 7.3 billion euros in revenue, lower than the market's expected 7.46 billion euros.$PHLX Semiconductor Index (.SOX.US)$Meanwhile, component stock GlobalFoundries rose nearly 7%, while Taiwan Semiconductor rose slightly and then fell during trading. Analysis suggests that the latest Trump statements have hit companies related to advanced semiconductors, but are bullish for these four "Made in America" concept stocks.
Meanwhile, among the constituent stocks...GlobalFoundries rose nearly 7%...$GlobalFoundries (GFS.US)$...rose nearly 7%...$Intel (INTC.US)$...rose slightly...$Texas Instruments (TXN.US)$,$Microchip Technology (MCHP.US)$Investigators believe that companies related to advanced semiconductors have been hit by recent Trump statements, while these four "Made in America" concept stocks may benefit.
Former U.S. President Donald Trump recently stated that because all of America's chip business had been "stolen" and received no benefit, Taiwan should pay "defense fees".
Earlier this year, Trump said on a show, "All of our chips were made by us in the past, and now 90% of chips are made in Taiwan... Remember that Taiwan is very smart and clever, and they took our business away from us. We should have stopped them long ago."
According to research firm TrendForce's data released in March, in the Q4 2023 global semiconductor wafer outsourcing market, TSMC and Samsung topped the revenue list, with GlobalFoundries ranking third. However, TSMC's market share reached 61% that quarter, while Samsung and GlobalFoundries accounted for slightly over 11% and less than 6%, respectively.
Trump once attributed his economic agenda to low interest rates and low taxes, stating that there was tremendous incentive to get work done and bring businesses back to the U.S. His new running mate, Pence, also supports economic nationalism, believing that free trade has destroyed American manufacturing.
Earlier this week, Trump was officially nominated as the Republican presidential candidate for the 2024 U.S. presidential election, with most polls showing higher support for him than for incumbent President Biden. Analysis suggests that if Trump returns to office, American chip manufacturing companies such as GigaDevice may benefit from this.
In addition, Intel is also promoting its own foundry business. It is worth noting that Intel announced during Trump's tenure a $7 billion investment in building the "world's most advanced semiconductor factory". At the time, analysts pointed out that this move was clearly in line with Trump's political views.
Editor/Somer