The tech-heavy Nasdaq Composite Index (^IXIC) continues to slide as semiconductor stocks are hit by the Biden administration’s plans to potentially impose stricter restrictions on AI chip exports to China. Former President Donald Trump also commented to Bloomberg about potentially forcing Taiwan to pay for U.S. defense costs.
Matt Bryson, SVP of Equity Research at Wedbush Securities, appears on Market Domination to offer his thoughts on the decline in semiconductor stocks.
“If you look at what the U.S. is doing in terms of restricting capital investment in China, if that’s successful, it would certainly weigh on ASML (ASML) and it would also weigh on other capital investment names like Tokyo Electron (TOELY) and that’s something to take into consideration,” Bryson said.
“If China gets more aggressive and starts banning imports, that’s something to think about. But again, it changes things a lot for a company like Nvidia (NVDA) because their revenue from China is relatively small because of the already heavy regulations in place. I don’t think there’s any real impact in thinking about moving away from Taiwan Semi (TSM) over the next 2-3 years. There’s no replacement for Taiwan Semi.”
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This post was written by Nicholas Giacobino