It’s been a wild month for tech stocks; NVIDIA, Intel, and AMD are all down at least 20% in the last month. Generally, the tech market’s current faulters can be attributed to political uncertainty and wavering confidence in the current, and future, forms of product fabrication.
Tensions between the Biden administration and chip fabricators granting access to China’s industry are causing eyes to wander over to TSMC, a Taiwanese company that produces the vast majority of the world’s chips. Should that company’s capabilities and legal width become contested, it could spell disaster for the world’s chip supply and thus, any company currently producing chips for their GPUs and CPUs are likely to observe price dips in their stock.
NVIDIA, arguably the best GPU producer in the world, is down just over 20% M/M as of August 9th, 2024. NVIDIA, much like most other tech companies, has subcontracted TSMC for their chip fabrication.
AMD, one of the two most popular CPU producers in the world next to Intel, and close runner-up for second best GPU producer (though they are currently contesting the first place position against NVIDIA), is down just under 25% M/M as of August 9th, 2024.
Intel takes the cake for the worst hit during this tech sandstorm: down just over 43% M/M as of August 9th, 2024. It’s unclear how much Intel’s business practices in 2024 are helping to sway tech investors in general, but the fact that they’ve recently cut 15,000 jobs and announced the cancellation of their dividends probably doesn’t help to convince the bearish types of good news in the near future.