Chip stocks led by Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD), Qualcomm Inc (NASDAQ:QCOM), Micron Technology, Inc (NASDAQ:MU) and Arm Holdings Plc (NASDAQ:ARM) were trading lower Tuesday amid reports of Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) plans to boost the price of its AI chip production services.
TSMC stock also traded lower on Tuesday.
U.S. Big Tech stocks harboring AI ambitions are also trading lower Tuesday, including Microsoft Corp (NASDAQ:MSFT), Meta Platforms, Inc (NASDAQ:META), Alphabet Inc (NASDAQ:GOOGL), Apple Inc (NASDAQ:AAPL), and Amazon.Com, Inc (NASDAQ:AMZN).
TSMC’s new Chair, C.C. Wei, has already discussed his price hike plans with Nvidia CEO Jensen Huang, the Nikkei Asia reports.
Wei justified passing down the higher value of its AI chips to its customers, like Nvidia, who were already charging a premium for their products, taking credit for their AI moat.
Huang recently voiced AI’s “$100 trillion” opportunities at his Taipei Computex tech trade fair speech.
However, Wei ruled out the possibility of migrating its fabs out of Taiwan despite political tensions, as the island accounts for 80%—90% of its production capacity.
Semiconductor sector ETFS, including VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Semiconductor ETF (NASDAQ:SOXX), are trading lower on Tuesday. U.S. Big Tech ETFs, including Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), and SPDR Select Sector Fund (NYSE:XLK) are down Tuesday.
Photo by Sundry Photography on Shutterstock
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Nvidia, AMD Chips To Get Dearer as Taiwan Semi Eyes AI Chip Price Hike originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: finance.yahoo.com