最新ニュース iShares Semiconductor ETF (NASDAQ:SOXX)

iShares Semiconductor ETF

Technology

To pursue its objective, the Fund seeks to track the investment results of the NYSE Semiconductor Index (the Underlying Index), which measures the performance of the equity securities of the 30 largest U.S.-listed companies that are classified according to the ICE Uniform Sector Classification schema within the semiconductors industry (as determined by ICE Data Indices, LLC or its affiliates (collectively Index Provider or IDI)). Constituents must also meet other eligibility criteria determined by the Index Provider, including minimum market capitalization and liquidity requirements. Companies classified within the semiconductors industry include companies that either manufacture materials that have electrical conductivity (semiconductors) to be used in electronic applications or utilize LED and OLED technology. The semiconductors industry also includes companies that provide services or equipment associated with semiconductors such as packaging and testing..

Broadcom Inc Common

Nvidia Corp.

Advanced Micro Devices Inc.

Applied Materials, Inc.

Qualcomm Inc.

Kla Corp.

Monolithic Power Systems Inc

Texas Instruments Inc

Taiwan Semiconductor - Adr

Intel Corp.

Analyst Color

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Tech

AAPL

INTC

NVDA

ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF

NVDX

PLTR

SOXL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

先週8月2日に終了した週は、テクノロジースペースが下落し、テクノロジー選択セレクトセクターSPDRファンド（NYSE：XLK）が5%以上下げ、大型株企業の業績を測るS&amp;P500指数を下回った。今週、テック市場を駆りたてた要因と、これらの株が近期および中期に向けて向かっている方向をまとめた。

大型企業株　S&amp;P500株をSPDRファンドが下回る

The <a href="https://www.benzinga.com/topic/artificial-intelligence">AI-driven market</a> surge has hit troubled times and JPMorgan analyst Jason Hunter is telling investors to be cautious.
Recent bear gaps in AI stocks have cracked short-term trend support, leaving tech darlings like Nvidia Corp (NVDA), Broadcom Inc (AVGO) and Marvell Technology Inc (MRVL) looking vulnerable. 
But before VOO investors start sweating, there&#8217;s a silver lining: the broader market, and by extension the Vanguard S&amp;P 500 ETF (VOO), remains well-anchored.
<h2 class="wp-block-heading">AI's Stumble Vs. The Broader Market Picture</h2>
Tech stocks have been leading the charge, and their weight in the S&amp;P 500—over 37% of VOO's holdings—means any AI sector shake-up has ripple effects. 
NVDA stock, for instance, is fighting to hold key support near $114, while AVGO stock eyes a rebound from the $180-$186 range, per Hunter. The iShares Semiconductor ETF (SOXX), a key barometer for AI and chip stocks, has lost 7.54% in just five days. While that signals near-term pain, Hunter points out that longer-term support levels remain intact.
Read Also: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43291968/3-etfs-shine-as-trumps-first-week-sparks-record-gains-followed-by-tech-slump">3 ETFs Shine As Trump&#8217;s First Week Sparks Record Gains Followed By Tech Slump</a>
<h2 class="wp-block-heading">What This Means For VOO Investors</h2>
VOO, a favorite among passive investors, is designed for broad-market exposure. Unlike concentrated tech plays, it absorbs volatility better thanks to diversification. Microsoft Corp (MSFT), Apple Inc (AAPL) and Amazon.com Inc (AMZN) may feel the tech squeeze, but financials, healthcare and consumer staples act as stabilizers.
JPMorgan's take? While AI stocks may struggle to regain immediate footing, they're approaching key support levels, likely forming a multi-week or multi-month trading range rather than a prolonged downturn.
<h2 class="wp-block-heading">Stay The Course Or Shift Gears?</h2>
Short-term traders might see this as an opportunity to hedge, but for long-term VOO investors, the playbook remains unchanged: stay the course. 
VOO's resilience comes from its balanced exposure to 500 of the biggest U.S. companies, smoothing out sector-specific dips. If AI rebounds as expected, VOO holders will benefit without needing to time the market.
The bottom line? 
AI may be wobbling, but VOO investors have little reason to panic. The ETF's broad-market strategy keeps it on solid ground, making short-term volatility a mere blip in the bigger picture.
Read Next: 
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<li><a href="https://www.benzinga.com/25/01/43142623/happy-birthday-sp-500-spy-etf-if-you-invested-1000-in-spy-at-launch-heres-how-much-youd-have-today">Happy Birthday S&amp;P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here&#8217;s How Much You&#8217;d Have Today</a></li>
</ul>
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Technicals

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AMZN

AVGO

MRVL

MSFT

Why VOO Investors Should Keep Calm Despite AI Stock Turbulence

On Tuesday, Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) <a target="_blank" href="https://www.benzinga.com/topic/tsmc" rel="noreferrer noopener">stock saw some</a> redemption after <a target="_blank" href="https://www.benzinga.com/markets/equities/25/01/43221806/nvidia-amd-broadcom-smci-tsmc-and-other-tech-giants-lead-monday-pre-market-selloff-as-nasdaq-100-futures-plummet-over-650-points-amid-reports-of-chinese-ai-startup-deepseek-overtaking-chatgpt" rel="noreferrer noopener">a selloff</a> driven by China's progress in AI on Monday.
The Taiwan economy ministry told Reuters that semiconductor business between Taiwan and the U.S. is a "win-win" model for both sides given the high level of complementarity, especially the U.S.-designed, Taiwan-foundry model. 
The ministry commented in response to tariff threats from U.S. President Donald Trump, something he has been indulging since his presidential campaign days.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43200619/byd-geely-and-saic-fight-back-against-eus-high-ev-tariffs-in-legal-battle" rel="noreferrer noopener">BYD, Geely, SAIC Contest EU's High EV Tariffs In Court</a>
Trump&nbsp;has called Chinese AI start-up&nbsp;DeepSeek's performance&nbsp;a "wake-up call" and "positive" for America's tech sector and threatened tariffs on foreign-made&nbsp;semiconductor chips, including those made by&nbsp;Taiwan Semiconductor, unless they start producing them stateside, SCMP <a target="_blank" href="https://www.scmp.com/news/china/article/3296523/donald-trump-calls-deepseeks-strong-showing-wake-call-us-tech-sector" rel="noreferrer noopener">reports</a>.
Taiwan, home to the key contract chipmaker Taiwan Semiconductor, is a key link in the global technology supply chain for Apple&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).
Trump voiced plans to impose tariffs on imported chips, pharmaceuticals, and steel in line with his MAGA ambitions.
In 2020, under the first Trump administration, Taiwan Semiconductor shared plans to build a $12 billion factory in Arizona. The chipmaker's total investment now stands at $65 billion. It bagged <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/43099745/taiwan-semiconductor-touts-1-5-billion-in-us-subsidies-confident-trump-will-maintain-chips-act-backing" rel="noreferrer noopener">$1.5 billion in subsidies</a> from the U.S.
The chipmaker committed $38 billion—$42 billion in fiscal 2025 capex versus fiscal 2024 capex of $29.8 billion.&nbsp;
In January, Taiwan Economy Minister Kuo Jyh-huei voiced the negligible impact of any&nbsp;tariffs on semiconductor exports.
Last week, Trump directed federal agencies to investigate persistent U.S. trade deficits and unfair trade practices by other countries. Taiwan's trade surplus with the U.S. grew 83% in 2024, with exports to the U.S. hitting $111.4 billion.
Recently, Taiwan Semiconductor chief C.C. Wei <a target="_blank" href="https://www.benzinga.com/25/01/43138590/jim-cramer-says-taiwan-semiconductors-capex-plans-boost-applied-materials-lam-research-kla-stocks" rel="noreferrer noopener">overlooked concerns over</a> U.S. AI sanctions. He flagged the chipmaker's focus on advanced packaging, citing that non-AI sectors like automotive and crypto mining remain unruffled by embargoes.
Taiwan Semiconductor stock surged over 64% in the last 12 months. Investors can gain exposure to the stock through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;At the last check on Tuesday, TSM stock traded higher by 0.51% to $193.29.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/43197956/qualcomm-gains-2-billion-boost-from-samsung-s25-chipset-deal-analyst-highlights-growth-in-handsets-and-beyond" target="_blank" rel="noreferrer noopener">Qualcomm Gains $2 Billion Boost From Samsung S25 Chipset Deal, Analyst Highlights Growth in Handsets and Beyond</a></li>
</ul>
Photo by Jack Hong via Shutterstock

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Taiwan Semiconductor Stock Rebounds After Selloff, US-Taiwan Chip Partnership Still Faces Tariff Threats

The emergence of DeepSeek, a Chinese artificial intelligence startup <a href="https://www.benzinga.com/25/01/43232316/deepseek-jitters-shatter-us-tech-stocks-wipe-out-12-trillion-on-wall-street-analyst-eyes-four-chinese-giants-set-to-benefit">rattled the markets</a> on Monday. However, as AI demand continues to rise many described the reaction to be "overdramatic" and suggested to "buy the dip". Here is a list of top semiconductor exchange-traded funds, with the lowest expense ratios that investors could consider. 
What Happened: As DeepSeek boasts of high performance at a significantly lower cost, semiconductor stocks which are the backbone of AI development, bore the brunt of the selloff.
"To me, it's an overreaction," Fundstrat Global Advisors‘ head of research Tom Lee <a href="https://www.cnbc.com/2025/01/27/tom-lee-calls-market-sell-off-overreaction-nvidia-falls-on-deepseek-news.html?taid=67980792a96d920001c44f58&amp;utm_campaign=trueanthem&amp;utm_medium=social&amp;utm_source=twitter%7Cmain">told </a>CNBC's "Closing Bell," comparing the drop to Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) March 2020 decline that proved to be a significant <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">entry point</a> for investors.
Similarly, Subho Moulik, the founder and CEO of Appreciate said, "The sudden emergence of DeepSeek is a Sputnik-like moment for the U.S. and potentially undermines U.S. AI exceptionalism, but we see yesterday's panic selling to be overdramatic."
As Nvidia shares <a href="https://www.benzinga.com/markets/equities/25/01/43259288/fundstrats-tom-lee-sees-nvidias-17-plunge-as-an-opportunity-calls-nasdaqs-over-600-points-plunge-drop-a-market-overreaction">plunged</a> 17% on Monday, eroding $593 billion in <a href="https://x.com/charliebilello/status/1884009665597690125">market capitalization</a>, Moulik said, "It's not just Nvidia, the other semicaps that took a battering in the markets – Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) – can be an interesting buy on dip."
Investors could consider buying ETFs with a low expense ratio to "buy on dip." An expense ratio is a percentage that represents the annual cost of owning a fund or an ETF which is calculated by dividing a fund&#8217;s operating expenses by its net assets.
According to <a href="https://www.schwab.com/learn/story/etfs-how-much-do-they-really-cost#:~:text=Investors%20should%20consider%20the%20impact,significantly%20erode%20returns%20over%20time.">Charles Schwab</a>, &#8220;ETFs with lower expense ratios and lower trading costs typically offer better value to investors, because higher expense ratios and/or steeper trading costs may significantly erode returns over time.&#8221; 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>ETF Name</td>
<td>AUM (In Billion)</td>
<td>Expense Ratio</td>
<td>Six Month Returns</td>
</tr>
<tr>
<td>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>)</td>
<td>$1.28</td>
<td>0.35%</td>
<td>-0.29%</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)</td>
<td>$23.60</td>
<td>0.35%</td>
<td>-1.17%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>)</td>
<td>$13.86</td>
<td>0.35%</td>
<td>-7.14%</td>
</tr>
<tr>
<td>First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>)</td>
<td>$1.32</td>
<td>0.60%</td>
<td>-9.11%</td>
</tr>
<tr>
<td>ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>)</td>
<td>$1.24</td>
<td>0.95%</td>
<td>-7.38%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: <a href="https://www.etf.com/topics/semiconductors">ETF.com</a> </figcaption></figure>
See Also: <a href="https://www.benzinga.com/25/01/43259969/microsoft-ai-revenue-poised-to-surpass-10-billion-fueling-explosive-growth-says-piper-sandler-as-it-maintains-overweight-rating-on-msft">Microsoft&#8217;s AI Revenue Set To Surpass $10 Billion: Piper Sandler Maintains Overweight Rating </a>
Why It Matters: According to Moulik, DeepSeek&#8217;s claim of lower training costs of $6 million vs ChatGPT&#8217;s $100 million plus, remains unverified. The Chinese firm's reliance on less-advanced Nvidia chips, due to U.S. chip export restrictions, could also hinder its ability to maintain a competitive edge in AI development.
Even if DeepSeek&#8217;s cost claims hold, it&#8217;s still positive for Big Tech, said Moulik, as AI extends beyond Large Language Models. Cost-effective LLM training allows U.S. companies to prioritize <a href="https://www.benzinga.com/markets/25/01/43222744/verizon-launches-ai-connect-as-mckinsey-predicts-that-60-70-of-ai-workload-will-shift-from-training-to-inferencing-by-2030">LLM inferencing</a> – the next stage. Inferencing involves applying pre-trained LLMs for real-world tasks, optimizing AI investments by shifting focus from costly training to scalable, practical applications, ultimately driving long-term growth.
"For industry leaders like Microsoft Corp. and Alphabet Inc., this means redirecting massive spending from training infrastructure to real-world applications such as search, customer service, and automation," added Moulik. Cloud servers like Amazon.com Inc.&#8217;s Amazon Web Service could benefit too.
Although the short-term will be bumpy, the long-term runway appears stable, added Moulik, "Unless DeepSeek drops another Chinese New Year gift to the world later&nbsp;this&nbsp;year.&#8221;
Read Next:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/43258090/gamestop-short-seller-wants-freedom-of-speech-for-millions-having-stock-market-conversations-questioning-sec-on-what-protects-honest-opinions">Gamestop Short Seller Wants Freedom Of Speech For &#8216;Millions&#8217; Having Stock Market Conversations, Questioning SEC On &#8216;What Protects Honest Opinions?&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Sector ETFs

ETFs

FTXL

DeepSeek Buzz Batters Big Tech But This Analyst Says 'Buy The Dip:' Here's Are Top 5 Semiconductor ETFs With The Lowest Expense Ratios That You Can Consider

The AI boom that fueled a historic rally in semiconductor and infrastructure stocks over the past two years came to a screeching halt Monday, as a wave of selling swept through the market following the launch of DeepSeek, <a href="https://www.benzinga.com/markets/asia/25/01/43243584/deepseek-r1-vs-openai-what-consumers-need-to-know-about-ais-latest-challenger">China's open-source AI model.</a>
While NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) grabbed the top of headlines for its $600 billion market-cap wipeout — the largest single-day loss in U.S. market history — and triggered a 7.8% fall in the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), the pain was even more severe in AI infrastructure stocks, which have soared on expectations of an arms race in AI-driven capital expenditures.
Power, cooling and data center giants that once rode the AI euphoria saw single-day losses exceeding 20%, as investors reassessed the sustainability of relentless spending in the sector.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>2023 Return</td>
<td>2024 Return</td>
<td> % Change on Jan. 27, 2025 </td>
</tr>
<tr>
<td>Vertiv Holdings Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VRT#NYSE">VRT</a>)</td>
<td>+251%</td>
<td>+136%</td>
<td>-29.87%</td>
</tr>
<tr>
<td>Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>)</td>
<td>+66%</td>
<td>+257%</td>
<td>-28.31%</td>
</tr>
<tr>
<td>Astera Labs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALAB#NASDAQ">ALAB</a>)</td>
<td>N/A</td>
<td>+154%</td>
<td>-28.08%</td>
</tr>
<tr>
<td>Comfort Systems USA, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FIX#NYSE">FIX</a>)</td>
<td>+79%</td>
<td>+106%</td>
<td>-25.65%</td>
</tr>
<tr>
<td>Arista Networks Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>)</td>
<td>+94%</td>
<td>+87%</td>
<td>-22.38%</td>
</tr>
<tr>
<td>GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>)</td>
<td>N/A</td>
<td>+185%</td>
<td>-21.55%</td>
</tr>
<tr>
<td>Constellation Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NYSE">CEG</a>)</td>
<td>+36%</td>
<td>+91%</td>
<td>-21.00%</td>
</tr>
</tbody>
</table>
</figure>
&#8220;What makes Monday&#8217;s tech sell-off so jarring is that the valuations of many of these AI and tech companies offer no margin of error. Excessive valuation always becomes a problem, eventually, but fundamental news becomes a heightened problem when it is combined with excessive valuation,&#8221; said David Bahnsen, chief investment officer at The Bahnsen Group.
<h1 class="wp-block-heading">Why These AI Infrastructure Stocks Soared, Why They're Crashing Now</h1>
Stocks tied to data centers, power and networking, some of the biggest winners of the AI boom over the past two years, were hammered Monday as investors started questioning whether the relentless spending on AI infrastructure is truly sustainable.
<h1 class="wp-block-heading">1. Vertiv Holdings Co</h1>
Vertiv, a leader in data center cooling, surged 251% in 2023 and another 136% in 2024 as AI-driven computing loads pushed cooling demand through the roof. Yet, with concerns that data center expansion could slow, shares plunged nearly 30% on Monday, marking the worst day since Feb. 2022. 
<h1 class="wp-block-heading">2. Vistra Corp. </h1>
Vistra, one of the biggest power suppliers, had been riding the AI energy boom on bets that AI-driven electricity demand would continue to soar. Monday's sell-off crushed that narrative, sending shares down 28%, the worst single-day decline since the company went public in 2017.
In 2024, Vistra returned 257% to shareholders, recording the second-strongest performance among S&amp;P 500 stocks behind Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>). 
<h1 class="wp-block-heading">3. Astera Labs </h1>
Astera Labs, which specializes in connectivity chips for AI workloads, went public in 2024 and quickly gained 154% as its products became critical for AI data centers. However, Monday's rout saw the stock plummet nearly 30%, the worst drop since the company&#8217;s IPO last March, as investors feared a pullback in AI server deployments.
<h1 class="wp-block-heading">4. Comfort Systems USA</h1>
Comfort Systems, a HVAC and engineering solutions provider for commercial buildings and data centers, surged on AI-related construction demand. Yet, with AI firms now potentially reining in expansion, shares fell 26%. This represented the worst one-day drop since October 1999. 
<h1 class="wp-block-heading">5. Arista Networks </h1>
Arista Networks, a leading supplier of high-speed networking equipment for cloud providers, nearly doubled in 2023 as AI-driven upgrades boosted orders. Yet, with DeepSeek's efficiency raising questions about demand for high-end AI networking, the stock slid 22%.
<h1 class="wp-block-heading">6. GE Vernova </h1>
GE Vernova, the energy spin-off from General Electric, had benefited from AI-driven electrification trends, posting a 185% gain in 2024. However, with data center demand expectations cooling, shares slumped 21.5%.
<h1 class="wp-block-heading">7. Constellation Energy</h1>
Constellation, a nuclear energy leader, had been a key bet for long-term AI power needs, rallying 91% in 2024. On Monday, CEG shares tumbled 21% — the largest drop since the company&#8217;s IPO in 2022 — amid investor doubts creeping in over AI's real energy demand.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43250480/nvidia-sinks-below-200-day-average-for-first-time-in-2-years-deepseek-technical-reset">Nvidia Sinks Below 200-Day Moving Average For First Time In 2 Years As DeepSeek Sparks Historic Technical Reset</a></li>
</ul>
Photo: Pathdoc on Shutterstock.

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ANET

7 AI Infrastructure Stocks Plunge Over 20%, Outpace Semiconductor Rout As DeepSeek Upends Investment Landscape

Exchange-traded funds, or ETFs, with leveraged exposure to chipmaker Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) <a href="https://www.benzinga.com/etfs">experienced a dramatic Monday</a> thanks to the debut of AI upstart DeepSeek. 
<ul>
<li>The GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) plunged 34.55% as of writing. </li>
<li>Graniteshares 2x Short NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVD#NASDAQ">NVD</a>), its leveraged inverse counterpart designed to profit from Nvidia&#8217;s losses, soared 34.69% at last check</li>
<li>The ProShares Ultra Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which holds more than 40% of its assets in Nvidia, dropped by more than 27% </li>
<li>More broadly, the Vanguard Information Technology Index Fund, where Nvidia is the second-largest holding at nearly 15% of the portfolio, shed 4.7%.</li>
<li>The VistaShares Artificial Intelligence Supercycle ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIS#NYSE">AIS</a>), which has only 3% of its assets in Nvidia but holds other AI stocks, lost 8.43%.</li>
</ul>
These ETFs offer the potential for amplified profits at the cost of higher-than-usual fees of around 1% and greater volatility. 
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43250480/nvidia-sinks-below-200-day-average-for-first-time-in-2-years-deepseek-technical-reset">Nvidia Sinks Below 200-Day Moving Average For First Time In 2 Years As DeepSeek Sparks Historic Technical Reset</a>
<h3 class="wp-block-heading">What Triggered The Selloff?</h3>
DeepSeek is the culprit. This <a href="https://www.benzinga.com/25/01/43232316/deepseek-jitters-shatter-us-tech-stocks-wipe-out-12-trillion-on-wall-street-analyst-eyes-four-chinese-giants-set-">Hangzhou, China-based AI startup</a> launched a new model that poses a challenge to U.S. competitors, including Nvidia's core business. 
DeepSeek's open-source AI model has already surpassed ChatGPT in downloads on Apple's app store, leaving the AI market in awe. Industry experts like venture capitalist Marc Andreessen called this moment a &#8220;Sputnik moment&#8221; for U.S. AI companies as this could be a ground-breaker in the AI space, reported Reuters.
The market's reaction was swift. Nvidia&#8217;s stock, a major player in the AI space, dropped nearly 17.65%, taking along semiconductor stocks like Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) in the ride south. 
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), which tracks semiconductor stocks, also plummeted by 8.39%, experiencing its worst day since the pandemic-led selloff in March 2020.
As fear spread, investors flocked to safe-haven assets like U.S. Treasuries, leading to yields on the 10-year note dipping to a one-month low.
See Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43244872/tech-stocks-tumble-on-ai-nightmare-nvidia-eyes-worst-day-since-march-2020-bitcoin">Tech Stocks Tumble On AI Nightmare, Nvidia Eyes Worst Day Since March 2020, Bitcoin Drops Below $100,000: What&#8217;s Driving Markets Monday?</a></li>
</ul>
Photo: Shutterstock

Broad U.S. Equity ETFs

NVDL

DeepSeek AI Model Sends Shockwaves Through Nvidia, Slams ETFs

A wild selloff rattled tech stocks on Monday, striking at the heart of AI optimism as China&#8217;s DeepSeek startup unveiled an open-source large language model platform that outperforms OpenAI&#8217;s ChatGPT at a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43239042/magnificent-seven-broadcom-lose-nearly-900-billion-in-value-as-deepseek-sparks-ai-carnage-why-this-expert-is-still-bullish-on-us-tech">fraction of the cost. </a>
The shockwave hit U.S. markets hard, raising fears over intensifying AI competition just as companies pour heavy investments into the new technology. 
The elite Magnificent Seven stocks collectively shed about $600 billion in market value, with Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) alone erasing $450 billion, or 15% of its valuation. The AI powerhouse is on track for its worst single-day loss since March 18, 2020.
The Nasdaq 100 tumbled 3%, eyeing its steepest drop since Dec. 18, when hawkish comments from Fed Chair Jerome Powell rattled markets. The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) plunged over 7%, also eyeing its worst session since the pandemic-driven selloff of March 2020.
Chipmakers took a beating, with Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) both crashing 17.5%, while Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) sank 11%.
As panic spread, investors sought refuge in safe-haven Treasury assets. Treasury yields slid, with the 10-year yield falling 7 basis points to a one-month low. The U.S. 10-Year Treasury Note ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UTEN#NASDAQ">UTEN</a>) rose 0.7%. 
The tech turmoil even bled into crypto markets, dragging Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) back below $99,000. The world's largest cryptocurrency lost $110 billion in market cap within hours as risk-off sentiment took hold.
<h3 class="wp-block-heading">Monday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>44,523.61</td>
<td>0.2%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,284.39</td>
<td>-1.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,994.21</td>
<td>-1.8%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,059.65</td>
<td>-3.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012725&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 1.9% to $596.73.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.2% higher to $445.05.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) dropped 3.4% to $511.88.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 1% to $226.47.</li>
<li>The&nbsp;Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up 2.2%; the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) tumbled, down 5.3%.</li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
<ul>
<li>AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) soared 6.5% in reaction to stronger-than-expected earnings. </li>
<li>SoFi Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) plummeted 12% as a downbeat guidance darkened better-than-expected quarterly results. </li>
<li>Crypto-related stocks such as MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) and Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) fell by 7.8% and 9.6%, respectively. </li>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) rallied 3%, defying the broader tech selloff. </li>
</ul>
Read now: 
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<li><a href="https://www.benzinga.com/news/earnings/25/01/43240067/rtx-lockheed-martin-report-q4-earnings-tuesday-doge-concerns-nato-spending-on-watch">RTX, Lockheed Martin Report Q4 Earnings Tuesday: DOGE Concerns, NATO Spending On Watch</a></li>
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Cryptocurrency

Macro Economic Events

Bonds

Econ #s

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$BTC

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SOFI

UTEN

Tech Stocks Tumble On AI Nightmare, Nvidia Eyes Worst Day Since March 2020, Bitcoin Drops Below $100,000: What's Driving Markets Monday?

U.S. tech stocks are crumbling like dry sand in premarket trading Monday as Chinese open-source artificial intelligence platform DeepSeek R1 sparks investor fears over AI competition and capital allocation into <a href="https://www.benzinga.com/markets/equities/25/01/43221806/nvidia-amd-broadcom-smci-tsmc-and-other-tech-giants-lead-monday-pre-market-selloff-as-nasdaq-100-futures-plummet-over-650-points-amid-reports-of-chinese-ai-startup-deepseek-overtaking-chatgpt">high-cost American firms.</a>
Futures on the Nasdaq 100 plunged 4% as of 8:00 a.m. ET, setting the stage for their worst session since September 2022. 
Semiconductor stocks, the backbone of AI development, are bearing the brunt of the selloff, with AI darling Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) plunging 12%, potentially eyeing its worst day since March 18, 2020.
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) is down 4.5%, with heavy losses also hitting Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), down 13%, Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), down 11%, and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), down 9.5%.
AI infrastructure and data center stocks are also seeing steep declines, with GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) plummeting 14%, Vistra Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VST#NYSE">VST</a>) and Constellation Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>) both sliding 11.5%, and Arista Networks Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>) falling 10%.
The S&amp;P 500 is not immune to the fallout, with futures on the index falling 2.2%, while the Dow Jones Industrial Average is inching 0.8% lower due to its smaller exposure to tech. 
With AI stocks leading market gains over the past year, today's rout threatens to wipe out $1.2 trillion in market capitalization.
<h3 class="wp-block-heading">DeepSeek: A Game-Changer In AI?</h3>
DeepSeek R1, an open-source AI model, is reportedly rivaling top U.S. AI models at a fraction of the cost, leveraging lower-power NVIDIA chips to bypass U.S. export restrictions.
&#8220;DeepSeek has produced a large language model that rivals many of the leading U.S. offerings. And they've done it at a fraction of the cost, using less powerful chips,&#8221; said David Morrison, senior market analyst at Trade Nation.
Investors are now questioning whether AI software firms can sustain their pricing models. 
Bloomberg Intelligence analyst Mandeep Singh highlighted that OpenAI charges $200 per month for its premium subscription, raising doubts about its pricing power if open-source alternatives offer similar or superior performance at a significantly lower cost.
&#8220;How do you justify that cost if an open-source platform does it better?&#8221; Singh said.
With billions in capital expenditures planned for 2025-2027, any shift in corporate spending could redefine the trajectory of AI investing.
&#8220;I don't think they are walking back on 2025 capex,&#8221; Singh added, dismissing the idea that companies would scale back investments immediately.
The AI frenzy that has propelled the &#8220;Magnificent Seven&#8221; stocks to record highs is now facing its biggest test. With major U.S. tech earnings due this week, investors are demanding answers.
&#8220;If the Mag-7&#8217;s Q4 earnings disappoint, these seven stocks could drag the S&amp;P 500 down significantly since they account for a whopping 30.5% of the market cap of the index,&#8221; warned Ed Yardeni, President of Yardeni Research.
<h3 class="wp-block-heading">Chinese Stocks To Watch</h3>
In a note on Sunday, Goldman Sachs analyst Ronald Keung highlighted that DeepSeek's breakthrough could lower barriers to entry in AI, paving the way for increased global competition. 
&#8220;We believe increasingly agile Chinese models and significant improvement in computing cost efficiencies could drive further room for wider adoption, exploration, and proliferation of AI applications,&#8221; Keung said.
He also indicated the potential for Chinese AI firms to expand their influence, pointing to companies like Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), China's largest cloud provider, and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), which has deep AI integration within its WeChat ecosystem.
According to Keung, also data centers GDS Holdings Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDS#NASDAQ">GDS</a>) and Vnet Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VNET#NASDAQ">VNET</a>) are expected to &#8220;benefit from ongoing public cloud and AI computing demand growth from multi-year higher AI adoption.&#8221;
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43223228/satya-nadella-said-we-should-take-development-out-of-china-very-very-seriously-now-deepseeks-r1-has-emerged-as-chatgpt-killer-outperforming-openai-with-50x-cheaper-prices-heres-more">Satya Nadella Said &#8216;We Should Take Development Out Of China Very, Very Seriously.&#8217; Now, DeepSeek&#8217;s R1 Has Emerged As A ChatGPT Killer, Outperforming OpenAI With 50x Lower Costs: Here&#8217;s More</a></li>
</ul>
Image: Shutterstock

BABA

TCEHY

VNET

DeepSeek Jitters Shatter US Tech Stocks, Wipe Out $1.2 Trillion On Wall Street: Analyst Eyes Four Chinese Giants Set To Benefit

JP Morgan analyst Samik Chatterjee <a target="_blank" href="https://www.benzinga.com/quote/QCOM/analyst-ratings" rel="noreferrer noopener">maintained an Overweight</a> rating on Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>).
Samsung Electronics recently launched its <a target="_blank" href="https://www.benzinga.com/25/01/43165472/samsung-taps-google-ai-qualcomm-tech-for-galaxy-s25-to-rival-apples-iphone" rel="noreferrer noopener">latest flagship smartphone</a>, the S25, which features Snapdragon chipsets across all variants.
This marks a share gain for Qualcomm compared to the prior generation flagship S24, where the Base and Plus models outside North America and China used Samsung&#8217;s in-house Exynos chipset.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42980720/microsoft-taps-meta-veteran-to-lead-new-coreai-division-plans-shift-from-openai-dependence" rel="noreferrer noopener">Microsoft Launches CoreAI Division: Ex-Meta Exec To Supercharge Copilot And AI Innovations</a>
Regaining this share at Samsung underscores Qualcomm&#8217;s technological leadership in mobile processors, which continues to expand into other key markets, including automotive and IoT.
Regarding the benefit from the incremental share, Chatterjee estimates the incremental revenue opportunity to amount to $2 billion within the Handset TAM and incremental EPS of about $0.63 (5% of fiscal 2025E EPS consensus).
According to Chatterjee&#8217;s estimate, incremental share gain with S25 amounts to an incremental 12 million units.&nbsp;&nbsp;
Chatterjee estimates the prior-generation flagship S24 shipments to be close to 40 million units in 2024, with 20 million for the high-end Ultra models.
With an estimated 60%/40% of the lower-end models leveraging Exynos / Snapdragon in the S24 line-up (only the U.S. and China leveraged SD), Chatterjee estimated Qualcomm had a 70% share of the last flagship, which will increase to 100% in the current generation flagship S25, or an incremental 12 million units year-on-year. The incremental units lead Chatterjee to an estimated incremental revenue of $2 billion, which implies an incremental EPS contribution of 5%.
Earlier this week, Chatterjee placed Qualcomm on Positive Catalyst Watch for the upcoming earnings print, with an upside from the expected share gain at Samsung as one of the drivers. He has already included the upside in his model.
Qualcomm stock surged 13% in the last 12 months. Investors can gain exposure to the stock through First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: QCOM stock is down 0.41% at $173.64 at last check Friday.
Also Read:
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<li><a href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" target="_blank" rel="noreferrer noopener">Apple And Nvidia Supplier Taiwan Semiconductor Leads Semiconductor Market with 64% Share</a></li>
</ul>
Image via Shutterstock.

Price Target

Reiteration

QCOM

Qualcomm Gains $2 Billion Boost From Samsung S25 Chipset Deal, Analyst Highlights Growth in Handsets and Beyond

The S&amp;P 500 briefly hit 6,100 points on Wednesday, reaching a fresh all-time high as Wall Street embraced a powerful mix of strong corporate earnings and President Donald Trump's bold $500 billion artificial intelligence<a href="https://www.benzinga.com/25/01/43139410/softbanks-role-in-500-billion-stargate-ai-venture-seen-as-major-growth-driver-analyst-says"> initiative, dubbed &#8220;AI Stargate.&#8221; </a>
The project, designed to transform America's AI infrastructure, added fuel to a market already cheering on stronger-than-expected fourth-quarter earnings and rising hopes of Federal Reserve interest rate cuts later this year.
Mega-cap technology stocks and semiconductor giants led the charge, pushing the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — higher for the sixth time in the last seven sessions.
By midday Wednesday, the S&amp;P 500 hit 6,100.4 points, narrowly surpassing its previous record of 6,099 set on Dec. 6.
See Also: <a href="https://www.benzinga.com/25/01/43142623/happy-birthday-sp-500-spy-etf-if-you-invested-1000-in-spy-at-launch-heres-how-much-youd-have-today">Happy Birthday S&amp;P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here&#8217;s How Much You&#8217;d Have Today</a>
<h3 class="wp-block-heading">AI Stargate: A Game-Changing Investment in AI Infrastructure</h3>
Trump unveiled AI Stargate on Jan. 21. The joint venture unites OpenAI, led by Sam Altman, SoftBank, backed by Masayoshi Son, and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) to build next-generation AI infrastructure.
The project aims to invest up to $500 billion over four years to develop massive AI data centers across the U.S., starting with an initial $100 billion phase.
Trump hailed the initiative as a &#8220;declaration of confidence in America&#8217;s potential,&#8221; emphasizing its importance in keeping the future of AI technology within U.S. borders. 
AI Stargate is expected to create 100,000 jobs almost immediately, further boosting optimism about economic growth.
<h3 class="wp-block-heading">Earnings Strength Fuels Market Optimism</h3>
While AI excitement dominated headlines, a strong corporate earnings season provided the foundation for the market&#8217;s rally. 
As of Jan. 17, 81% of S&amp;P 500 companies reporting fourth-quarter results had exceeded Wall Street's profit forecasts, while 64% had beaten revenue estimates, according to FactSet.
Mega-cap firms reporting earnings this week — including Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>), Prologis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLD#NYSE">PLD</a>), Procter &amp; Gamble (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), and Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) — all topped estimates, reinforcing investor confidence in corporate America&#8217;s strength.
&#8220;The S&amp;P 500's forward profit margin was at a record-high 13.6% during the January 18, 2025, week, up 0.9 percentage points from 12.7% a year earlier,&#8221; veteran investor Ed Yardeni said in a note Wednesday. 
&#8220;Corporate profitability should continue to improve even as Trump's administration faces a big fiscal headwind.&#8221;
<h2 class="wp-block-heading">Tech Titans Drive The Market Higher</h2>
The so-called &#8220;Magnificent 7&#8221; stocks were at the center of Wednesday's rally, with the Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) climbing 1.5%.
Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>) surged 4%, while Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) jumped 4.6%, reinforcing their dominance in the AI race. Chip stocks saw particularly strong gains as investors bet on increased demand for AI-related infrastructure. 
Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), the SoftBank-owned semiconductor design firm, soared 15%—its biggest single-day gain since February 2024.
SoftBank's 2024 annual report had described Arm as providing &#8220;the foundational technology for Artificial Super Intelligence,&#8221; a claim that now appears increasingly relevant as AI Stargate takes shape.
<h3 class="wp-block-heading">Six Stocks Powering The S&amp;P 500's Record High</h3>
Just a handful of companies were responsible for a significant portion of the broader market's surge on Wednesday. 
Nvidia and Microsoft alone contributed 53 basis points to the S&amp;P 500&#8217;s advance, while Netflix, Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Oracle Corp. collectively added another 18 basis points.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Security Name</th>
<th>Price</th>
<th>Weight in S&amp;P 500</th>
<th>1-day %chg</th>
<th>Contribution to S&amp;P 500</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nvidia Corp.</td>
<td>$1,472.46</td>
<td>6.51%</td>
<td>4.55%</td>
<td>+29bp</td>
</tr>
<tr>
<td>Microsoft Corp.</td>
<td>$445.37</td>
<td>6.27%</td>
<td>3.94%</td>
<td>+24bp</td>
</tr>
<tr>
<td>Netflix Inc.</td>
<td>$952.64</td>
<td>0.72%</td>
<td>9.54%</td>
<td>+6bp</td>
</tr>
<tr>
<td>Amazon.com Inc.</td>
<td>$233.46</td>
<td>4.10%</td>
<td>1.19%</td>
<td>+5bp</td>
</tr>
<tr>
<td>Meta Platforms Inc.</td>
<td>$626.13</td>
<td>2.65%</td>
<td>1.57%</td>
<td>+4bp</td>
</tr>
<tr>
<td>Oracle Corp.</td>
<td>$184.92</td>
<td>0.51%</td>
<td>7.15%</td>
<td>+3bp</td>
</tr>
</tbody>
</table>
</figure>
Read now: 
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<li><a href="https://www.benzinga.com/25/01/43059744/exclusive-can-sp-500-repeat-large-gains-from-donald-trumps-first-term-a-second-time-around-readers-say-this-return-range-most-likely" target="_blank" rel="noreferrer noopener">Can S&amp;P 500 Repeat Large Gains From Trump's First Term A Second Time Around? Readers Say This&#8230;</a></li>
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Image: Shutterstock

MAGS

NFLX

ORCL

SCHW

S&P 500 Hits Fresh Records At 6,100: Strong Earnings, Trump's AI Wager Fuel Bull Run

Tech stocks enjoyed a surge Wednesday, driven by a sharp rise in semiconductor shares after President Donald Trump, OpenAI's Sam Altman, Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) co-founder Larry Ellison, and SoftBank CEO Masayoshi Son unveiled the <a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43135764/trumps-500-billion-stargate-ai-plan-puts-3-etfs-in-focus">Stargate Project on Tuesday</a>.
The $500 billion initiative is set to develop AI infrastructure in the U.S. over the next four years.
According to OpenAI, &#8220;this infrastructure will secure American leadership in AI, create hundreds of thousands of American jobs, and generate massive economic benefit for the entire world.&#8221;
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up 2.3% by midday trading in New York, eyeing their fourth straight positive session, the longest streak since late September. 
Yet, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)&#8217;s CEO Elon Musk questioned the financial viability, saying that founders &#8220;<a href="https://www.benzinga.com/markets/equities/25/01/43121798/elon-musk-says-project-stargate-doesnt-actually-have-the-money-after-trump-announces-500-billion-ai-investment-led-by-softbank-oracle-and-openai">don't actually have the money</a>.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">They don't actually have the money
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1881923570458304780?ref_src=twsrc%5Etfw">January 22, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The earnings season continues to be off to a strong start, with companies surpassing fourth-quarter expectations, showcasing the resilience of corporate America. Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) delivered a stronger-than-expected quarterly performance across the board, driving its shares up 12%.
Elsewhere, small caps paused for a breather following Tuesday&#8217;s outperformance vis-à-vis large-cap counterparts. 
Chinese stocks slipped, with the iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>) down 0.8%, after Trump floated the idea of imposing a 10% tariff on China starting from Feb. 1.
In commodities, gold prices surged to an 11-week-high, marking their tenth gain in the past eleven sessions, as investors flocked to safe-haven assets amid rising geopolitical risks.
On Wednesday, Trump warned Russian President Vladimir Putin of potential new sanctions if a peace deal for Ukraine is not reached. Meanwhile, oil prices remained flat after three consecutive sessions of losses.
In the crypto market, selling pressure is mounting as traders react to the absence of crypto-related commentary from the new administration, which had previously positioned itself as crypto-friendly. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) retreated nearly 2% to $104,000.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,933.62</td>
<td>1.7%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>6,103.81</td>
<td>0.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>44,173.70</td>
<td>0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,307.01</td>
<td>-0.5%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:30 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent012225&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.8% to $602.64.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.3% higher to $441.25.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.6% to $533.22.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.5% to $228.56.</li>
<li>The&nbsp;Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) rallied, up 2.4%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 1.6%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Oracle Corp. rallied 7% as reaction to the Stargate project. Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) was the chipmaker&#8217;s top performer on Wednesday, up 14%. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose over 4%. </li>
<li>Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>) rose 2.8% in reaction to quarterly results beating Street&#8217;s estimates. </li>
<li>Other stocks reacting to company earnings include Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), up 8.8%, Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), up 2.6%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>), down 2%, Seagate Technology Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>), up 9%, Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), down 1.3%, Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>) down 3.4%, Abbott Laboratories (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABT#NYSE">ABT</a>), up 2.2%, GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>), up 2.2%, Amphenol Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APH#NYSE">APH</a>), up 6%, The Travelers Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>) up 3.8%, Halliburton Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HAL#NYSE">HAL</a>), down 1.3%, Ally Financials Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), up 4.5%. </li>
<li>Major large-cap companies slated to report earnings after the close include Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), </li>
</ul>
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/news/global/25/01/43135622/coffee-prices-soar-to-record-highs-could-starbucks-face-margin-squeeze">Coffee Prices Soar To Record Highs: Could Starbucks Face Margin Squeeze?</a></li>
</ul>
Image: Shutterstock

Earnings

Commodities

ALLY

IBKR

STLD

TSLA

Chipmakers Rally On AI Stargate Bet, Netflix Soars, Bitcoin Falters As Trump Keeps Quiet On Crypto: What's Driving Markets Wednesday?

<a target="_blank" href="https://www.benzinga.com/topic/tsmc" rel="noreferrer noopener">Contract chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) expressed conviction in the Donald Trump administration&#8217;s commitment to bolstering the country&#8217;s semiconductor position by funding the construction of chipmaker facilities under the CHIPS Act.
Previously, Trump had <a target="_blank" href="https://www.benzinga.com/25/01/42784508/taiwan-semiconductors-2nm-progress-fuels-taiwan-index-musk-highlights-talent-pool" rel="noreferrer noopener">verbally attacked Taiwan</a> for not having a defense treaty with the U.S. and for allegedly undermining his country&#8217;s chip industry. He also expressed his disapproval of the CHIPS Act.
Taiwan Semiconductor CFO Wendell Huang <a target="_blank" href="https://www.cnbc.com/2025/01/19/tsmc-confident-in-continued-chips-act-funding-under-trump-says-cfo.html" rel="noreferrer noopener">told</a> CNBC the U.S. chip subsidies will likely continue under Trump as the fabrication plants pass construction and production milestones.&nbsp;
Also Read: <a href="https://www.benzinga.com/25/01/43065734/western-digital-poised-for-long-term-growth-despite-short-term-nand-pressures-analysts-say" target="_blank" rel="noreferrer noopener">Western Digital Faces &#8216;Challenging Pricing Environment,&#8217; But There&#8217;s Long-Term Potential: Analysts</a>
The chipmaker told CNBC that it had bagged $1.5 billion in subsidies from the U.S.
Taiwan Semiconductor&#8217;s Huang told CNBC that its first fabrication plant in Arizona started producing advanced chips in the fourth quarter of 2024 after&nbsp;production delays.&nbsp;He said that the construction of two plants in Arizona&nbsp;was on track, with the second likely&nbsp;operational in 2028.
Taiwan Semiconductor&#8217;s&nbsp;investment in its three Arizona projects is worth over $65 billion.
However, industry experts have told CNBC that they expect Trump to keep the policy intact&nbsp;due to its bipartisan support in Washington.&nbsp;
Last week, Taiwan Semiconductor chief C.C. Wei <a target="_blank" href="https://www.benzinga.com/25/01/43053982/taiwan-semiconductor-chief-calls-us-semiconductor-sanctions-manageable-to-skip-trump-inauguration" rel="noreferrer noopener">dismissed concerns over</a> U.S. semiconductor sanctions, calling them &#8220;manageable.&#8221; He also flagged the company&#8217;s focus on advanced packaging and stated that non-AI sectors like automotive and crypto-mining remain unaffected by sanctions.
Taiwan Semiconductor reported&nbsp;fourth-quarter revenue&nbsp;growth of 38.8%, reaching $26.88 billion, topping the analyst estimate of $26.28 billion.
The gross margins expanded by 600 bps to 59% as its 3-nm and 5-nm technologies gained traction.
It expects first-quarter 2025 revenue of $25.0 billion—$25.8 billion, in line with the&nbsp;$24.97 billion analyst consensus and a gross margin of 57%—59%. The company committed $38 billion—$42 billion to fiscal 2025 capex versus actual capex of $29.8 billion a year ago.&nbsp;
Taiwan Semiconductor stock surged over 87% in the last 12 months.
Investors can gain exposure to companies&#8217; stocks engaged in the manufacturing of semiconductors through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock traded higher by 0.93% to $213.47 premarket at the last check on Tuesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/media/25/01/43038361/nvidia-continues-strong-demand-for-taiwan-semiconductors-advanced-packaging-despite-technology-shifts" target="_blank" rel="noreferrer noopener">Nvidia Continues Strong Demand for Taiwan Semiconductor&#8217;s Advanced Packaging Despite Technology Shifts</a></li>
</ul>
Image: Shutterstock

Taiwan Semiconductor Touts $1.5 Billion In US Subsidies, Confident Trump Will Maintain CHIPS Act Backing

<a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">Contract chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) chief C.C. Wei opted to maintain a low profile by skipping President-elect&nbsp;Donald Trump&#8217;s inauguration, including donations to the Trump camp, Bloomberg reports.
The inaugural committee raised over <a target="_blank" href="https://www.benzinga.com/markets/equities/25/01/42938119/lockheed-martin-donates-1m-to-trumps-inaugural-committee-as-speculation-grows-over-elon-musk-led-doge-crackdown-on-traditional-defense-contracts" rel="noreferrer noopener">$170 million for January events</a>, thanks to donors including&nbsp;Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>),&nbsp;Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>),&nbsp;Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>),&nbsp;Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and&nbsp;Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
Big Tech giant leaders, including Apple&#8217;s Tim Cook, Amazon&#8217;s Jeff Bezos, and Tesla Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) Elon Musk will attend the inauguration on January 20.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/25/01/43038644/citi-cheap-valuation-investment-banking-and-trading-outlook-paired-with-accelerating-buybacks-sparks-optimism-analyst" rel="noreferrer noopener">Citi Outperforms Analyst Expectations With 12% Revenue Growth, Confirms $20 Billion Buyback Plan</a>
Reuters reports that Wei blamed the crisis of skilled workers, supply chain gaps, and inadequate chip plant construction regulations for delaying the construction of its Arizona project.
Wei added that Taiwan Semiconductor&#8217;s U.S. plant is unlikely to procure the most advanced chip technology before factories in Taiwan due to compliance issues, construction, and other regulations.
Wei told Reuters that building the new Arizona factory took at least twice as long as in Taiwan due to the complex regulations that made it challenging to employ the chipmaker&#8217;s latest technology in the U.S. before Taiwan.
Previously, Taiwan Semiconductor stated most of its chip manufacturing would remain in Taiwan, especially for the most advanced chips.
Trump had called out Taiwan during <a target="_blank" href="https://www.benzinga.com/government/24/10/41604100/trump-goes-after-taiwan-semiconductor-on-joe-rogan-podcast" rel="noreferrer noopener">his presidential campaigns</a> for allegedly&nbsp;sabotaging America&#8217;s chip industry. He verbally attacked the U.S. CHIPS Act and pledged to slap tariffs on Taiwanese chips. He had also flagged the lack of a formal defense treaty between the U.S. and Taiwan.
Additionally, before handing over the charge to the Trump government, the Biden administration launched another round of <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">artificial intelligence technology sanctions</a> on countries, including China and Russia, to restrict their warfare capabilities.
China has been a key semiconductor market for companies like Taiwan Semiconductor. Washington aims to maintain its semiconductor position dominance and share control with its allies, including Taiwan, the Netherlands (home to ASML Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>)), and South Korea (home to Samsung Electronics (OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>)).
Wei told Bloomberg that he found the semiconductor sanctions &#8220;manageable&#8221; and does not expect them to affect chips for non-AI sectors such as cars and crypto-mining.
On Thursday, Taiwan Semiconductor reported <a target="_blank" href="https://www.benzinga.com/news/earnings/25/01/43022654/taiwan-semiconductor-q4-earnings-3nm-and-5nm-nodes-lead-topline-growth-expands-margins-issues-strong-q1-outlook" rel="noreferrer noopener">fourth-quarter revenue</a> of $26.88 billion (NT$868.46 billion), up 38.8%, topping the consensus estimate of $26.28 billion.
As its 3-nm and 5-nm technologies gained traction, the chipmaker&#8217;s gross margins expanded by 600 bps to 59%.
It expects first-quarter 2025 revenue of $25.0 billion—$25.8 billion versus the&nbsp;$24.97 billion consensus. It projects a gross margin of 57%—59%. Taiwan Semiconductor committed $38 billion—$42 billion to fiscal 2025 capex versus actual capex of $29.8 billion a year ago.&nbsp;
During the earnings call, Wei expressed conviction in producing chips of the same quality in Arizona as in Taiwan with a smooth ramp-up process.
Taiwan Semiconductor stock surged 109% in the last 12 months.
Investors can gain exposure to companies engaged in the manufacturing of semiconductors through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)
and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock traded higher by 0.20% to $215.21 premarket at the last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/25/01/43026092/bank-of-america-q4-earnings-6-7-billion-profit-1-7-billion-in-investment-banking-fees-forecasts-higher-nii-in-2025" target="_blank" rel="noreferrer noopener">Bank of America Q4 Earnings: $6.7 Billion Profit, $1.7 Billion In Investment Banking Fees</a></li>
</ul>
Photo by Jack Hong via Shutterstock

ASML

GOOG

GOOGL

SSNLF

Taiwan Semi Chief To Skip Trump Inauguration, Calls US Semiconductor Sanctions 'Manageable'

The U.S. <a href="https://www.benzinga.com/topic/semiconductors">semiconductor </a>sector is going through nail-biting times as further <a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report">potential sanctions on the export of artificial intelligence chips</a> to China loom.
What Happened: Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was recently left with a bitter taste after its big tech customers <a href="https://www.benzinga.com/25/01/42970112/nvidia-order-delays-and-ai-sanctions-threaten-global-sales-offer-growth-opportunity-for-us-tech-giants">deferred billions of dollars in orders</a>.
As geopolitics shakes up the industry, investors are monitoring the ramifications for exchange-traded funds, or ETFs, tied to the sector. Here are three such ETFs, among many others, that are caught in the crosshairs:
<ul>
<li>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>): This ETF&#8217;s top holdings include Nvidia, Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>). Each company is deeply involved in AI chip production and data center infrastructure. This makes the ETF particularly vulnerable to regulatory changes in this space.</li>
</ul>
<ul>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>): This ETF boasts holdings in Nvidia, Intel (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), and Broadcom. Potential export restrictions could disrupt these companies' revenue streams, naturally causing ripples in the ETF's performance.</li>
</ul>
<ul>
<li>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>): This ETF has an equal-weighted structure that diversifies the exposure across semiconductor firms. Its significant allocations in Nvidia, AMD, and Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) make it vulnerable to export restrictions.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/news/25/01/43013412/whats-going-on-with-marvell-technology-mrvl-stock">What&#8217;s Going On With Marvell Technology (MRVL) Stock?</a> 
<h3 class="wp-block-heading">Nvidia Faces Double Whammy</h3>
The Biden administration is reportedly considering a new set of sanctions over the next few days. According to a Bloomberg report, the new sanctions may include a three-tier framework targeting AI chip exports, aiming to curb China's access to advanced technology. These restrictions could take effect before Donald Trump assumes office on Jan. 20.
Nvidia, a sector heavyweight, faces a double whammy. In addition to the potential export restrictions, Nvidia's hyperscaler customers — Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon&#8217;s (NADAQ: AMZN) AWS, Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), and Meta (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) — recently postponed $10 billion worth of orders for its Blackwell GB200 data center racks due to overheating issues. This disruption adds to the challenges Nvidia faces, as up to 50% of its chips may be destined for markets that could fall under the new export rules, according to D.A. Davidson&#8217;s Gil Luria, as reported by Reuters.
According to Defiance ETFs CEO Sylvia Jablonski, &#8220;Geopolitical tensions, particularly between the U.S. and China, have significantly impacted the semiconductor industry. Each time we've heard a report about a potential US ban on semiconductors from the White House we've seen NVDA and all other semiconductor stocks fall.&#8221;
<h3 class="wp-block-heading">Long-Term Outlook For ETFs</h3>
While the short-term outlook for semiconductor ETFs remains uncertain, the long-term prospects offer significant opportunities. AI, quantum computing and other technological advancements are expected to drive substantial demand for advanced semiconductors. Despite geopolitical headwinds, semiconductor-focused ETFs could benefit from the ongoing innovation and market growth.
Summing up the sector's potential, Jablonski said: "Any kind of high tech, innovative trend has its risks and rewards. Investors should understand that innovation takes time, and that price action is often volatile proceeding it. However, if the innovations like AI, Quantum computing come to fruition, the opportunities for investors are endless!"
Read Next: 
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<li><a href="https://www.benzinga.com/etfs/sector-etfs/25/01/43027627/blackrocks-etf-business-excels-in-2024-with-record-390-billion-net-inflows">BlackRock&#8217;s ETF Business Excels In 2024 With Record $390 Billion Net Inflows</a></li>
</ul>
Photo: Shutterstock.

Global

Nvidia Suffers $10 Billion Setback, AI Chip Sanctions Spell Trouble For 3 ETFs

Wall Street paused for a breather on Thursday, following Wednesday's big rally sparked by a softer-than-predicted December inflation report that fueled speculation on the Federal Reserve delivering interest rate <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43003047/stocks-rise-on-core-inflation-slowdown-banks-rally-after-strong-q4-earnings-treasury-yields-plummet">cuts during the year. </a>
By midday, stocks were little changed as attention shifted to the next major event: Donald Trump's inauguration as 47th U.S. president on Monday.
On the data front, December retail sales rose 0.4% from the previous month, a slower pace than November's 0.8% increase and below expectations of 0.6%. Jobless claims climbed by 16,000 to 217,000, slightly higher than <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43027744/retail-sales-slow-jobless-claims-rise-is-us-consumer-loosing-steam">the projected 210,000. </a>
See Also: <a href="https://www.benzinga.com/25/01/43020430/cathie-wood-sounds-alarm-over-inflation-pressures-and-consumer-woes-peter-schiff-flags-oil-spike-what-economists-are-saying">Cathie Wood Says Inflation Worries Dampen Expectations, Schiff Singles Out Wall Street For Swallowing Narrative Even As Prices Soar</a>
The weaker data sent Treasury yields lower, with the 10-year yield slipping four basis points to 4.61%, extending the previous day's 14-basis-point decline.
Falling yields helped gold climb 0.9% to $2,970 per ounce, reaching a two-month high as investors moved toward safe-haven assets. 
Semiconductor stocks stood out the best-performing industry, with the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) gaining 1.8%. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) jumped more than 5% after delivering strong quarterly earnings, lifting the broader chip industry. Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>) and ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) advanced 7% and 6%, respectively.
Oil prices pulled back 2.6%, giving up part of Wednesday's 4% gain. Traders speculated that Trump's policies could ease sanctions on Russian energy exports as part of a broader effort to negotiate peace in Ukraine. 
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) edged down 1% to $99,000, following a slight pullback across cryptocurrency markets.
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,958.43</td>
<td>0.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,255.53</td>
<td>0.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,264.04</td>
<td>0.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,239.38</td>
<td>0.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated 12:40 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent011525&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) remained unchanged at $593.10.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;flattened at $432.18.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was unchanged at $516.54.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) inched 0.1% to $224.31.</li>
<li>The&nbsp;Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, up 2.1%; the&nbsp;Health Care Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) lagged, down 0.5%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
<ul>
<li>Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) fell 2% following quarterly earnings. Peer Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) rose 2.7%.</li>
<li>Other stocks reacting to earnings were UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>), down 4.7%, Infosys Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INFY#NYSE">INFY</a>), down 5.2%, PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>), down 2%, U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>), down 5.3%, M&amp;T Bank Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>), down 2.8%, First Horizon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>). </li>
<li>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) fell by 3.6% after the EV giant announced reduced selling prices on its Cybertruck, in a strategy to revive demand. </li>
<li>Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) dropped 3% after the European Commission's competition chief confirmed that the investigation into the company under the Digital Markets Act will move forward as scheduled, with enforcement anticipated by March 2024.</li>
</ul>
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</ul>
Image: Shutterstock

Treasuries

AMAT

INFY

TSX:XL

Stocks Pause, Chipmakers Rise, Gold Hits 2-Month Highs: What's Driving Markets Thursday?

On Thursday, Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) fourth-quarter results beat forecasts, fueled by demand for advanced processor node technologies for artificial intelligence applications.
The contract chipmaker, which supplies chips for&nbsp;Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) graphics processing unit&nbsp;(GPU)&nbsp;and Apple, Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) smartphones, guided first-quarter revenue <a target="_blank" href="https://investor.tsmc.com/english/quarterly-results/2024/q4" rel="noreferrer noopener">above the consensus</a>.
Taiwan Semiconductor reported fourth-quarter revenue of $26.88 billion (NT$868.46 billion), up 38.8% year-over-year, topping the analyst consensus estimate of $26.28 billion.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43013634/opecs-optimism-clashes-with-ieas-conservative-2025-oil-growth-projections" rel="noreferrer noopener">OPEC&#8217;s Optimism Clashes With IEA&#8217;s Conservative 2025 Oil Growth Projections</a>
Net income and earnings per share were NT$374.68 billion and NT$14.45 per share ($2.24) versus <a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus of $2.23</a>.
In dollar terms, revenue growth was 37.0% year over year and 14.4% quarter over quarter. <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips" rel="noreferrer noopener">The top-line performance</a> aligned with the company&#8217;s guidance of $26.1 billion—$26.9 billion.
Taiwan Semiconductor said its business was supported by demand for its 3-nm and 5-nm technologies. However, it expects smartphone seasonality to impact the first quarter, partially offset by continued growth in AI-related demand.
The company said 3-nm accounted for 26% of the total revenue, 5-nm accounted for 34%, and 7-nm technologies accounted for 14%. 7-nm and more advanced technologies comprised 74% of the total wafer revenue.
Margin Profile:&nbsp;Taiwan Semiconductor&#8217;s AI technology moat helped it expand its fourth-quarter gross margins by 600 bps to 59%, as its 3-nm and 5-nm chips gain traction at the cost of&nbsp;Intel Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and&nbsp;Samsung Electronics&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>),&nbsp;<a target="_blank" href="https://www.benzinga.com/25/01/42825523/taiwan-semi-likely-for-upside-backed-by-ai-demand-and-advanced-node-pricing-analyst-says" rel="noreferrer noopener">which struggled to transition</a>&nbsp;into advanced nodes. Taiwan Semiconductor&#8217;s operating margin expanded by 740 bps to 49%.
Outlook: Taiwan Semiconductor is guided for first-quarter 2025 revenue of $25.0 billion-$25.8 billion versus the <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">$24.97 billion consensus estimate</a>. It expects a gross margin of 57%—59% and operating profit margins of 46.5%—48.5%.
The company earmarked fiscal 2025 capex worth $38 billion-$42 billion (versus $29.8 billion a year ago) amid intensifying geopolitical tensions between the U.S. and China, with the former eying tougher <a target="_blank" href="https://www.benzinga.com/25/01/43003008/taiwan-semi-samsung-intel-may-face-stricter-us-rules-on-chip-exports-to-china-over-security-concerns" rel="noreferrer noopener">artificial intelligence technology</a> restrictions on the latter, citing national security concerns.
Taiwan Semiconductor stock surged over 103% in the last 12 months.
Investors can gain exposure to semiconductor manufacturing stocks through the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock traded higher by 4.86% at $216.85 premarket at the last check on Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/tech/25/01/43008511/broadcoms-latest-san-switch-offers-scalable-energy-efficient-solution-for-growing-storage-demands" target="_blank" rel="noreferrer noopener">Broadcom&#8217;s Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands</a></li>
</ul>
Photo by wakamatsu.h via Shutterstock

Guidance

Taiwan Semiconductor Q4 Earnings: 3nm and 5nm Nodes Lead Topline Growth, Expands Margins, Issues Strong Q1 Outlook

On Wednesday, Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)&nbsp;announced the availability of the Brocade G710 24-port 64G switch, a <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/g43002072/broadcom-launches-the-industrys-lowest-latency-and-highest-efficiency-san-switch-for-rack-based-in" rel="noreferrer noopener">top-of-rack SAN switch</a>.
Brocade Gen 7 Fibre Channel combines cyber-resilient and autonomous SAN technology into this cost-effective platform that seamlessly integrates into rack-based storage solutions, the company said.
The Brocade G710 switch extends the 64G SAN portfolio, which includes fixed port switches, modular directors, extension switches, and management software.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">Nvidia and AI Chip Stocks Brace for Impact as Biden Administration Considers New China Export Ban: Report</a>
Purpose-built for small to mid-sized businesses, the Brocade G710 provides low-cost access to Gen 7 Fibre Channel technology.
At 460 ns port-to-port latency at 64G speed, it&#8217;s the industry&#8217;s lowest latency Fibre Channel switch. It is an energy-efficient Fibre Channel switch with a typical power draw of just 65 watts.
According to the company, the G710 is an affordable Gen 7 entry point that starts at just eight ports and can scale up to 24 ports to support growing environments.
The switch can address the most demanding application and storage requirements, supporting up to 64G speed and 1.5 Tb/s total bandwidth.
Designed with a cyber-resilient architecture, the Brocade G710 Switch ensures robust, high-level security for organizations&#8217; critical data and applications.
Broadcom&nbsp;stock surged over 106% in the last 12 months. Goldman Sachs Toshiya Hari noted that Broadcom <a target="_blank" href="https://www.benzinga.com/25/01/42924519/nvidia-amd-broadcom-lead-semiconductor-stock-decline-amid-us-china-ai-chip-export-ban-concerns-amd-downgraded-by-goldman-sachs-and-more" rel="noreferrer noopener">is favorably positioned</a> alongside Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). It is backed by the AI Semiconductor business, with an acceleration in Networking, a recovery in the cyclical parts of its Semiconductor portfolio, revenue growth, and margin expansion in Software.
Needham&#8217;s N. Quinn Bolton <a target="_blank" href="https://www.benzinga.com/25/01/42953261/nvidia-broadcom-and-marvell-positioned-for-growth-as-ai-demand-drives-semiconductor-momentum" rel="noreferrer noopener">projected upside from</a> the unit growth of XPUs, both general-purpose GPUs and hyperscaler custom ASICs.
Investors can gain exposure to Broadcom through Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Actions:&nbsp;AVGO stock is up 1.95% at $228.80 at last check Wednesday.
Also Read:
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<li><a href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" target="_blank" rel="noreferrer noopener">Apple And Nvidia Supplier Taiwan Semiconductor Leads Semiconductor Market with 64% Share</a></li>
</ul>
Photo via Shutterstock

SCHG

Broadcom's Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>), and&nbsp;Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) could face more <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">cumbersome export regulations</a> as the U.S. aims to restrict China&#8217;s access to advanced chips, citing national security threats.
The Biden administration&#8217;s latest measures seek to encourage the chipmakers&nbsp;to analyze and perform more due diligence on customers carefully, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-15/us-to-push-tsmc-and-samsung-to-tighten-flow-of-chips-to-china?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> unnamed sources familiar with the matter.
Prior reports alleged Taiwan Semiconductor-made chips finding a way&nbsp;to the blacklisted Chinese company&nbsp;Huawei Technologies Co.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42986042/apple-sees-market-share-decline-in-2024-as-chinese-smartphone-brands-surge-globally-idc" rel="noreferrer noopener">Apple Sees Market Share Decline in 2024 as Chinese Smartphone Brands Surge Globally: IDC</a>
The latest sanctions, likely to be announced on Wednesday, could limit Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;and rivals&#8217; sales of AI chips to data centers in the U.S.&#8217;s non-ally countries like China and Russia.
The U.S. could restrict the export of advanced chips, implying those 14 or 16 nanometers and below, and mandate a government license to sell them in China and other restricted nations.
The suggested regulations aim to help chip manufacturers identify which designs, from which customers, are subject to U.S. semiconductor sanctions.
The U.S. aims to target more sophisticated processors, namely, AI accelerators designed by Chinese companies.
The U.S., Europe, and Japan ramped up their focus on their domestic semiconductor positions to reduce dependence on China by tapping chipmakers like Taiwan Semiconductor following <a target="_blank" href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" rel="noreferrer noopener">the 2020 pandemic</a> that disrupted the global supply chains.
Additionally, the U.S. started restricting China&#8217;s access to advanced semiconductor technology from Nvidia and Taiwan Semiconductor, which Washington alleged China utilized to boost its military warfare position.
The U.S. also encouraged its allies, including Taiwan and the Netherlands (home to chip equipment maker&nbsp;ASML Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>), to restrict semiconductor trade with China.
Taiwan Semiconductor commanded a 64% <a target="_blank" href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" rel="noreferrer noopener">global foundry business share</a> in the third quarter of 2024. Samsung scored second with a 12% share backed by its 4nm and 5nm processes.
Investors can gain exposure to stocks of companies that manufacture semiconductors through the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock closed higher by 0.26% at $201.97 premarket at the last check on Wednesday.
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Photo by William Potter on Shutterstock

Taiwan Semi, Samsung, Intel May Face Stricter US Rules on Chip Exports to China Over Security Concerns

Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is finalizing the verification of its <a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">&#8220;made in America&#8221;</a> processor chips from Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plant in Arizona.
The first batch of commercial chips will likely by this quarter, Nikkei Asia <a target="_blank" href="https://asia.nikkei.com/Business/Tech/Semiconductors/Apple-in-final-stages-of-verifying-TSMC-s-Made-in-USA-chips" rel="noreferrer noopener">reports</a>.
The 2020 pandemic prompted countries including the U.S., Europe, and Japan to consolidate their semiconductor position by tapping chipmakers like Taiwan Semiconductor, Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Samsung Electronics Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>), thereby reducing their dependence on China.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42947562/taiwan-semiconductor-begins-4nm-chip-production-in-arizona-eyes-11-4-billion-q4-profit" rel="noreferrer noopener">Taiwan Semiconductor Begins 4nm Chip Production in Arizona, Eyes $11.4 Billion Q4 Profit</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14050746/newplot-4.png" alt="" class="wp-image-732034" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14050746/newplot-4.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/14050746/newplot-4-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Additionally, the U.S. started restricting China&#8217;s access to advanced semiconductor technology, which Washington alleged China utilized to boost its military warfare position.
Washington also restricted China&#8217;s access to sophisticated Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Taiwan Semiconductor&#8217;s artificial intelligence chips.
The country also canvassed its allies, including Taiwan and the Netherlands (home to chip equipment maker ASML Holding (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asml#NASDAQ">ASML</a>), to restrict semiconductor trade with China.
Meanwhile, Taiwan Semiconductor bagged a 64% share of the global foundry business in the third quarter of 2024, up from 62% in the second quarter, Taipei Times <a target="_blank" href="https://www.taipeitimes.com/News/biz/archives/2025/01/14/2003830149" rel="noreferrer noopener">cites</a> Counterpoint Research.
Last November, Counterpoint said Taiwan Semiconductor owed its moat to high utilization rates in its 5nm and 3nm processes, artificial intelligence (AI) accelerator demand, and smartphone sales.
Samsung came second with a 12% share backed by its 4nm and 5nm processes, Taipei Times cites Counterpoint.
China&#8217;s Semiconductor Manufacturing International came third after it secured 6%, backed by its 28nm process, Taipei Times cites Counterpoint.
United Microelectronics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UMC#NYSE">UMC</a>) tied with GlobalFoundries Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>) with a 5% share backed by demand in the Internet of Things and communications infrastructure markets.
The 3nm process scored a second position in the third quarter, bagging a 13% share, on the back of the full utilization of Taiwan Semiconductor&#8217;s production capacity, as production by Apple, Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Intel gained momentum.
The 5 and 4nm processes bagged the numero uno position, securing 24% of the market in the third quarter, courtesy of demand for Nvidia&#8217;s Blackwell graphics processing units.
Taiwan Semiconductor plans to start producing its 2nm process at its fab in Hsinchu County&#8217;s Baoshan Township in 2025.
Goldman Sachs <a target="_blank" href="https://www.benzinga.com/25/01/42825523/taiwan-semi-likely-for-upside-backed-by-ai-demand-and-advanced-node-pricing-analyst-says" rel="noreferrer noopener">expressed optimism over</a> Taiwan Semiconductor&#8217;s prospects, citing AI demand and advanced node growth. Taiwan Semiconductor&#8217;s price hikes for 3 and 5nm nodes in 2025 (while Intel and Samsung struggle to develop their AI technology moat) could boost its margins to over 59%.
Taiwan Semiconductor stock surged over 98% in the last 12 months. Investors can gain exposure to the stocks of companies that manufacture semiconductors through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: TSM stock is down 0.65% at $200.05 at the last check on Tuesday.
Also Read:
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<li><a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" target="_blank" rel="noreferrer noopener">Nvidia and AI Chip Stocks Brace for Impact as Biden Administration Considers New China Export Ban: Report</a></li>
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Image via Shutterstock

Apple And Nvidia Supplier Taiwan Semiconductor Leads Semiconductor Market with 64% Share

Investors found relief on Tuesday as December&#8217;s producer prices came in below expectations, alleviating inflation concerns that have threatened to derail the Federal Reserve&#8217;s plans for potential policy <a href="https://www.benzinga.com/25/01/42973016/producer-prices-rise-less-than-expected-offer-opportunity-for-market-rebound">easing during 2025.</a>
Major U.S. indices moved higher in early trading as Treasury yields stalled, giving traders space to reassess interest rate expectations ahead of Wednesday&#8217;s pivotal consumer inflation report.
<h3 class="wp-block-heading">Softer Producer Inflation Provides Market Oxygen</h3>
In December 2024, the Producer Price Index rose 3.3% year-over-year, slightly below forecasts of 3.4%. Core producer inflation, which excludes volatile food and energy prices, remained steady at 3.5% annually, but monthly core prices flattened, reflecting softer price pressures across underlying components.
The S&amp;P 500 – tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – gained 0.5%, while the tech-heavy Nasdaq 100, mirrored by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose by a similar margin. Small caps led the charge, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up 0.9%, as traders rotated into economic-sensitive stocks battered by recent selloffs.
Blue-chip stocks, however, lagged as energy shares took a breather following a multi-day rally.
Still, Wall Street's broader gains may remain capped as investors await further clarity from Wednesday&#8217;s consumer price index report. Economists predict CPI to rise from 2.7% to 2.9% year-over-year in December, while core inflation is forecast to hold steady at 3.3%.
Treasury yields held steady, signaling that traders are pausing adjustments to their interest rate cut expectations. 
According to the CME FedWatch tool, the probability of a 25-basis-point rate cut rose slightly to 60% by July 2025 and 70% by October. 
<h3 class="wp-block-heading">Tesla Leads Discretionary Stocks Higher</h3>
Consumer discretionary stocks were among the day's top performers, driven by a 3% rally in Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). 
Shares of the EV giant climbed after a bullish note from Morgan Stanley, which raised Tesla's price target from $400 to $430 and projected a best-case scenario of $800. The firm cited the company's growing potential in autonomous rideshare and robotaxi services as key <a href="https://www.benzinga.com/tech/25/01/42967935/tsla-stock-rises-3-in-tuesday-pre-market-whats-going-on">drivers for long-term growth.</a>
The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) advanced 1%, reflecting broad strength across the sector.
<h3 class="wp-block-heading">Tech and Semiconductors Rebound</h3>
Tech stocks rebounded after several days of volatility, with semiconductors leading the way. 
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose more than 2%, while Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) and Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) also gained. The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) climbed nearly 1%, snapping a three-day losing streak during which it had dropped over 3%.
<h3 class="wp-block-heading">Chinese Stocks Surge On Policy Support</h3>
Chinese equities rallied as news of government intervention boosted investor sentiment. 
The China Securities Regulatory Commission announced plans to collaborate with the People's Bank of China to build a market stabilization mechanism, signaling support for the country's struggling markets.
Shares of PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) rose over 3%, while Baidu Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) and Alibaba Group Holding Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) advanced 2.4% and 2%, respectively.
Read now: 
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Image created using artificial intelligence via Midjourney.

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The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) finds itself at a crossroads. JPMorgan&#8217;s latest technical update reveals that the Philadelphia Semiconductor Index, a benchmark for the iShares Semiconductor ETF, has largely&nbsp;been propelled&nbsp;to&nbsp;the upper limit of&nbsp;a multimonth trading range by a rally in AI-related stocks. 
Yet the index now faces stiff resistance near 5,400, raising questions about its ability to sustain a long-term rally without support from the more cyclical analog <a href="https://www.benzinga.com/topic/semiconductors">semiconductor </a>group.
AI has been transforming industries and <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42921523/nvidias-lead-expands-analyst-says-ai-demand-remains-very-strong">driving demand</a> for semiconductors. Leading chipmakers like Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) have led the rally, riding the AI wave. Nvidia&#8217;s advanced Blackwell GPUs and Broadcom's custom AI accelerators enjoy solid market interest. JPMorgan warns the heavy reliance on AI names could be risky, as the analog semiconductor group, closely linked with global manufacturing cycles, dawdles.
JPMorgan said the analog segment is not performing up to par and this is consistent with with the PMI level globally being around 50, indicating a certain level of pessimism. SOXX would need participation from this segment to break out of its trading range and sustain a broader rally.
&#8220;We also highlight just how correlated the analog group is to the global manufacturing cycle, with the current pricing roughly in line with a 50 global manufacturing PMI reading. That coincides with the US exceptionalism theme that seems priced across markets in other asset classes,&#8221; JPMorgan analysts said in a note. 
<h3 class="wp-block-heading">Why SOXX Still Holds Promise</h3>
Despite these concerns, SOXX offers a strong value proposition for investors looking for exposure to the semiconductor industry&#8217;s growth. The ETF, which focuses solely on chip companies, is expected to capitalize on the AI spending boom. With Nvidia, Broadcom and Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) accounting for significant portions of its portfolio, SOXX bets heavily on the sector's leaders.
Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) alone are projected to spend $300 billion on AI infrastructure by 2025, according to a November report by Business Insider citing Morgan Stanley. This influx of investment bodes well for the ETF, which has holdings in nearly every key hardware stock involved in the AI revolution. With a 7.84% weighting in the ETF, Nvidia will expose investors to its industry leading advancements, whereas diversification within the AI hardware universe will come from Broadcom (with 10.94% weightage) and AMD (6.87%).
<h3 class="wp-block-heading">Watchful Optimism</h3>
JPMorgan's analysis brings both opportunities and risks for iShares Semiconductor ETF to the spotlight. For instance, a 2-point improvement in global manufacturing PMI could open up a 20% upside for the analog semiconductor group, as analyzed by JP Morgan. This can potentially improve the overall performance of iShares Semiconductor ETF. Conversely, the dependence of the ETF on AI-driven growth makes it sensitive to setbacks of the highly fragmented broader semiconductor market.
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Photo: Shutterstock.

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