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Global Chip Stocks from $NVDA to $ASML Fall as Geopolitics Trumps Tech
The global semiconductor industry is facing significant challenges as geopolitical tensions and supply chain disruptions weigh heavily on chip stocks. Major players like $NVDA (Nvidia) and $ASML (ASML Holding) have seen their stock prices plummet, reflecting the uncertainty and volatility in the market.
The ongoing trade war between the United States and China has created significant hurdles for chip manufacturers, who rely heavily on international supply chains. The recent restrictions on exports to China have further exacerbated the issue, causing a ripple effect throughout the industry.
In addition to geopolitical tensions, the industry is also grappling with the impact of the COVID-19 pandemic. The global lockdowns and supply chain disruptions have resulted in a significant decline in chip demand, leading to a surplus of inventory and downward pressure on prices.
Despite these challenges, some analysts believe that the industry will recover in the long term. The increasing demand for chips in emerging technologies like artificial intelligence, 5G, and the Internet of Things (IoT) is expected to drive growth in the coming years.
However, in the short term, investors are advised to exercise caution. The ongoing geopolitical tensions and supply chain disruptions make it difficult to predict the future performance of chip stocks.
Original Article: https://www.cnbc.com/2024/07/17/global-chip-stocks-from-nvidia-to-asml-fall-as-geopolitics-trump-weigh.html
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