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. (NASDAQ: NVDA) witnessed a decline of 4%, while Advanced Micro Devices Inc. (NASDAQ: 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.
As Bloomberg reported, Dutch chipmaker supplier ASML Holdings N.V (NASDAQ: 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 (NYSE: 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
NameMarket Cap (in billions)1-Day % Change1-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. (NASDAQ: AVGO) $513.07-1.82%-$9.32
- Intel Corporation$203.19-4.09%-$8.31
- Applied Materials, Inc. (NASDAQ: AMAT) $129.77-3.65%-$4.74
- QUALCOMM Incorporated (NASDAQ: QCOM) $156.73-2.63%-$4.13
- Lam Research Corporation (NASDAQ: LRCX) $99.26-3.85%-$3.82
- Micron Technology, Inc. (NASDAQ: MU) $91.85-2.51%-$2.30
- KLA Corporation (NASDAQ: KLAC) $76.92-2.94%-$2.26
- Analog Devices, Inc. (NASDAQ: ADI) $96.74-1.83%-$1.77
- NXP Semiconductors N.V. (NASDAQ: NXPI) $57.54-2.81%-$1.62
- Texas Instruments Incorporated (NASDAQ: TXN) $153.21-1.03%-$1.58
- Marvell Technology, Inc. (NASDAQ: MRVL) $50.75-2.67%-$1.35
- Monolithic Power Systems, Inc. (NASDAQ: MPWR) $29.17-3.49%-$1.02
- Microchip Technology Incorporated (NASDAQ: MCHP) $47.86-1.91%-$0.91
- Entegris, Inc. (NASDAQ: ENTG) $17.19-4.43%-$0.76
- Teradyne, Inc. (NASDAQ: TER) $16.16-2.58%-$0.42
- ON Semiconductor Corporation (NASDAQ: ON) $35.60-1.04%-$0.37
- Skyworks Solutions, Inc. (NASDAQ: SWKS) $17.64-1.88%-$0.33
- Qorvo, Inc. (NASDAQ: QRVO) $10.67-2.70%-$0.29
- Rambus Inc. (NASDAQ: RMBS) $7.08-3.55%-$0.25
- MKS Instruments, Inc. (NASDAQ: MKSI) $6.72-2.31%-$0.16
- Lattice Semiconductor Corporation (NASDAQ: LSCC) $9.37-1.64%-$0.15
- Axcelis Technologies, Inc. (NASDAQ: ACLS) $4.11-3.24%-$0.13
- Wolfspeed, Inc. (NASDAQ: WOLF) $5.490.74%$0.04