US-China tensions over Huawei: How has that hit US chipmaker stocks?

Chipmakers stocks fell after the Trump administration blocked chip shipments to Huawei on Friday, the Chinese technology champion. Ongoing US-China tensions continue to raise fears that the Chinese government could retaliate and hurt American companies with additional restrictions.

This is not the first time chips have been used as a weapon in the trade war, but it shouldn’t be a major worry for investors, says Patrick Moorhead, president and principal at Moor Insights & Strategy.

“This Huawei spat, China spat — it’s just another episode in this ongoing trade and IP. I wouldn’t look too closely. I mean this is, what, the 12th version of this of these bilateral spats? And the fact is, both countries need each other,” Moorhead told CNBC’s “Trading Nation” last week.

Qualcomm fell over 5% on Friday and closed 2.3% down at $78.09 on Tuesday. Intel was down 1.4% on Friday but closed up 0.6% at $60.29 on Tuesday.

Several smaller companies in the hardware industry also fell on Friday, including Micron (off 2.9% and closed down 1.7% on Tuesday at $45.12 ),  Lam Research (off more than 6% but closed up 1.6% on Tuesday at $261.66) and Qorvo (off more than 4% and closed down 0.7% on Tuesday at $98.33). The SMH semiconductor ETF, which holds stocks such as AMD and Intel, fell 4% in the past week.

Meanwhile, Apple was down less than 1% during trading on Friday, and closed 0.6% down on Tuesday at $313.14. Cisco gained less than 1% but closed down 1% on Tuesday at $44.60.

There are no long-term indicators that the drop in stock chipmakers stocks value will be permanent. As analysts remain bullish on Qualcomm as well as Intel and Nvidia, it may be a good time for investing in stocks in top-performing chipmakers this quarter.

Open a Stocks Account and Get $5 Free

  • Platform
  • Features
  • Rating
  • Visit Site
  • Sign up now and claim a $5 reward
  • Low minimum investment starting at $5
  • No minimum deposit to open an account
  • Fractional shares are available



    https://learnbonds.com/visit/StashCreate your account
    Hide Reviews
    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Galina Mikova

    Galina is a Hubspot-certified Technical Writer with over 10 years of experience in working with Fortune 500, private investment, banking, FOREX and niche tech companies as well as crypto and blockchain startups. She has a solid background in FinTech and blockchain technology.

    HTML Snippets Powered By : XYZScripts.com