Nvidia and Other Chip Stocks Fall as Tariff-Fueled Rout Continues

The chips are down. 

Chip stocks fell Friday, losing ground on the second trading day after President Donald Trump unveiled a set of global tariffs that sent stock markets dramatically lower—and the first since China announced its own retaliatory measures. The latest news offered investors yet another indication that trade war is here to stay, at least for now. 

The PHLX Semiconductor Index (SOX), which tracks chip shares, was recently down about 7%. Four of its components, namely Marvell Technology (MRVL), Coherent (COHR), Entegris (ENTG) and Micron Technology (MU), were recently off more than 7% apiece. 

“Because many finished electronics goods and IT infrastructure goods are ultimately imported from many of [the countries affected by the new tariffs],” UBS analysts wrote Thursday, “this could have  a profound negative impact on electronics demand.”

Nvidia (NVDA), one of last year’s stock-market darlings, was off more than 7% in recent trading.

Citi analysts yesterday suggested that analog chipmakers like Analog Devices (ADI) could outperform the broader sector in a downturn; its shares were off some 6% in recent trading. 

This week’s tariff announcements have hit stocks broadly. Today, all three major indexes were recently down roughly 4%, with the blue-chip Dow faring only a bit better. All 11 of the S&P 500’s sectors were recently in decline; its semiconductor and equipment subindex was down about 7%. 

China’s new tariffs on US imports are set to take effect Thursday, according to that country’s finance ministry.