7/17 Semiconductor-related stocks plummeted
Market impact: Remarks by current and former presidentsAs a result, semiconductor stocks reached their worst day in over 4 years, and the PHLX semiconductor index fell 6.8%. In particular, $Applied Materials(AMAT.US$ is 10.1%, $Lam Research(LRCX.US$ is 11.3%, $Advanced Micro Devices(AMD.US$ recorded a 10.5% decline
political factors: It was reported that President Biden mentioned the possibility of restricting semiconductor sales to China. This statement brought unease to the market and caused semiconductor stocks to fall. Also, former President Trump commented on Taiwan's defense costs and the fact that it is responsible for 90% of advanced microchip production, “took away about 100% of our semiconductor business,” which also brought uncertainty to the market.
The importance of Taiwan: Taiwan is responsible for over 90% of the world's advanced microchip production. In particular, $Taiwan Semiconductor(TSM.US$ Its stock price fell 8%. TSMC supplies chips to major technology companies such as Apple and NVIDIA, so the impact is huge.
Advice for investors: Analysts have mentioned the possibility that both sides will take a further aggressive stance before the election campaign, and are calling on investors to calm down. Instead of selling semiconductor stocks indiscriminately, we recommend investing from a long-term perspective.
The importance of Taiwan: Taiwan is responsible for over 90% of the world's advanced microchip production. In particular, $Taiwan Semiconductor(TSM.US$ Its stock price fell 8%. TSMC supplies chips to major technology companies such as Apple and NVIDIA, so the impact is huge.
Advice for investors: Analysts have mentioned the possibility that both sides will take a further aggressive stance before the election campaign, and are calling on investors to calm down. Instead of selling semiconductor stocks indiscriminately, we recommend investing from a long-term perspective.
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