Nvidia Corp (NASDAQ:NVDA) and peer chip stocks, including Advanced Micro Devices, Inc (NASDAQ:AMD) and Broadcom Inc (NASDAQ:AVGO), are trading lower Friday as the chip companies remain susceptible to potential sanctions on China regarding artificial intelligence chip exports.
The Biden administration could restrict Nvidia’s AI chip shipments with three-tier export rules favoring allies like Taiwan and barring Tier 3 nations like China.
The Chinese semiconductor equipment industry was estimated to reach $230 billion in 2024, according to Statista.
Also Read: Nvidia Teams Up with Dutch Government to Build Cutting-Edge AI Supercomputer Facility
Also on Friday, Taiwan Semiconductor reported consolidated revenue of 2.89 trillion New Taiwan dollars between January and December 2024 (up by 33.9% year-on-year), implying it made a consolidated revenue of 868.46 billion New Taiwan dollars ($26.3 billion versus a consensus of $26.2 billion) for the December quarter, up from $19.62 billion a year ago.
Goldman Sachs analyst Toshiya Hari pointed out that the semiconductor and semiconductor capital equipment sectors offer significant potential for generating alpha in 2024, particularly among companies supporting the build-out of AI infrastructure.
Top Performers in AI Infrastructure
Several stocks in the sector have greatly outperformed the broader market, delivering strong returns:
- Credo Technology Group (NASDAQ:CRDO) +245%
- Nvidia (NASDAQ:NVDA) +171%
- Broadcom (NASDAQ:AVGO) +108%
- Marvell Technology (NASDAQ:MRVL) +83%
- Arm Holdings (NASDAQ:ARM) +64%
Underperformers in Analog, MCU, and Power
In contrast, stocks in the …
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