This week, chip stocks crashed after U.S President Joe Biden’s administration announced fresh curbs that prohibit firms from providing advanced semi conductors to Chinese companies.
U.S chipmakers such as Qualcomm (NASDAQ:QCOM), Intel (NASDAQ:INTC), Texas Instruments (NASDAQ:TXN), Broadcom (NASDAQ:AVGO), Nvidia (NASDAQ:NVDA), Micron Technology (NASDAQ:MU), AMD (NASDAQ:AMD), Marvell Technology (NASDAQ:MRVL), Analog Devices (NASDAQ:ADI), Microchip Technology (NASDAQ:MCHP) and Skyworks Solutions (NASDAQ: SWKS) saw their stock prices crashing in response to the news of the curbs.
In Singapore, semiconductor related companies such as AEM (SGX:AWX), Frencken (SGX:E28) and UMS (SGX:558) joined the decline.
Which is the Worst Performing Chip Stock?
Let us take a look at the share price performance of each chipmakers and how the curb has affected their share price this week.
Qualcomm creates semiconductors, software, and services related to wireless technology.
The share price of Qualcomm declined by 8.82% in a week.
Intel is the world’s largest semiconductor chip manufacturer by revenue. The share price of Intel declined by 0.12% in a week.
Texas Instruments (NASDAQ:TXN)
Texas Instruments design and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally.
The share price of Texas Instruments declined by 6.70% in a week.
Broadcom manufactures and supply a wide range of semiconductor and infrastructure software products for the data centre, networking, software, broadband, wireless, and storage and industrial markets
The share price of Broadcom declined by 7.15% in a week.
Nvidia designs graphics processing units (GPUs), application programming interface (APIs) for data science and high-performance computing as well as system on a chip units (SoCs) for the mobile computing and automotive market.
The share price of Nvidia declined by 6.73% in a week.
Micron Technology (NASDAQ:MU)
Micron Technology manufactures computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives.
The share price of Micron Technology declined by 0.55% in a week.
Advanced Micro Devices (AMD) develops computer processors and related technologies for business and consumer markets.
The share price of AMD declined by 2.49% in a week.
Marvell Technology (NASDAQ:MRVL)
Marvell Technology develops and produces semiconductors and related technology.
The share price of Marvell Technology declined by 11.96% in a week.
Analog Devices (NASDAQ:ADI)
Analog Devices specializes in data conversion, signal processing and power management technology.
The share price of Analog Devices declined by 5.79% in a week.
Microchip Technology (NASDAQ:MCHP)
Microchip Technology manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.
The share price of Microchip Technology declined by 10.38% in a week.
Skyworks Solutions (NASDAQ: SWKS)
Skyworks manufactures semiconductors for use in Radio Frequency and mobile communications systems.
The share price of Skyworks Solutions declined by 7.64% in a week.
AEM Holdings Ltd provides intelligent system testing and handling solutions for semiconductor and electronics companies in Asia, Europe, and North and Central Amercia.
The share price of AEM Holdings Ltd declined by 21.67% in a week.
Frencken operates in two segments, Mechantronics and integrated Manufacturing Services (IMS).
The Mechantronics segment designs, develops and produces precision engineered systems and machines, electro-mechanical assemblies, and high precision parts and components for original equipment manufacturers in the semiconductor market.
The IMS segment provides integrated contract design and manufacturing services to automotive, and consumer and industrial electronics industries.
The share price of Frencken declined by 9.90% in a week.
UMS Holdings Ltd manufactures and markets high precision front-end semiconductor components, and provides electromechanical assembly and final testing services.
The share price of UMS Holdings Ltd declined by 19.84% in a week.
Summary of Chip Stocks Crashed
Marvell Technology led the decline in the US stock market.
|Stock Name||% Decline in 1 Week|
|Texas Instruments (NASDAQ:TXN)||(6.70)|
|Micron Technology (NASDAQ:MU)||(0.55)|
|Marvell Technology (NASDAQ:MRVL)||(11.96)|
|Analog Devices (NASDAQ:ADI)||(5.79)|
|Microchip Technology (NASDAQ:MCHP)||(10.38)|
|Skyworks Solutions (NASDAQ: SWKS)||(7.64)|
In Singapore stock market, AEM led the decline by 21.67%.
|Stock Name||% Decline in 1 Week|
By tabulating the % decline, it only gives a sentiment how bad the losses are. The decline in stocks related to semi conductors in Singapore seem relatively worst than the decline in stocks in the US stock market.
Among the chip stocks that crashed, I held Nvidia in my stock portfolio. Yes, I am also suffering losses due to the further curb that hit any companies that has any co-relationship to chips or semi conductors.
When I invested in Nvidia, I am aware of the risk of further curbs that can bring the share price down. I will adopt the strategy of further averaging down in tranches.
Even though the curbs are a “big setback to China”, it is “bad news” for global semiconductors.
What semi conductor or chip related stocks do you have in your stock portfolio that is hit badly by the sudden curb?