TSMC fell the most in the group, declining nearly 1% in Thursday’s premarket session.
- Several vessels were reportedly struck in and around Iranian waters in the past 24 hours, as U.S.–Iran conflict entered its 11th day.
- Chips produced by TSMC power most of the world’s gadgets, cars, and electronic equipment.
- Investors are increasingly concerned that escalating tensions could disrupt key shipping routes and global tech supply chains.
Shares of major semiconductor companies declined in early premarket trading on Thursday amid a broader market selloff, after reports of fresh attacks on ships in and near Iranian waters spooked investors about potential disruptions to global logistics and supply chains.
Taiwan Semiconductor Manufacturing stock led the declines, falling 0.8%, while Nvidia shares dropped 0.7%. Shares of Intel and Broadcom fell 0.7% and 0.6% respectively.
Chips from American companies, and produced in Asia by TSMC power the majority of phones, consumer gadgets, cars and other electronic equipment in the world. A disruption in the semiconductor supply chain will have significant second-order effects across industries.
Ships Hit In The Middle East
Several vessels were struck in the past 24 hours, including off the coast of Dubai and Iraq, while Bahrain announced a new strike targeting its oil facilities, the Wall Street Journal reported. There is growing fear that Iran-backed groups could shut the strait at the southern tip of the Arabian Peninsula, after the Strait of Hormuz has been effectively closed to commercial shipping since Feb. 28.
U.S. stock futures slipped, while oil prices spiked to over $100 a barrel.
Analysts are currently focused on the disruptions to oil supplies, though the issues could also spill over into the transport of other goods.
More Risk To US Companies
There are added risks for U.S. companies. Iran has reportedly identified offices and assets linked to major U.S. technology companies in the Middle East as potential targets, state-affiliated Tasnim News Agency.
It published a list titled “Iran’s new targets” naming regional offices, data centers, and facilities connected to firms, including Alphabet’s Google, Amazon, Microsoft , Nvidia, IBM, Oracle, and Palantir Technologies, according to a report by CNN on Wednesday.
Meanwhile, Iran-linked hackers have claimed responsibility for a destructive cyberattack on U.S.-based medical device company Stryker.
On Stocktwits, the retail sentiment was ‘bearish’ for NVDA and AVGO, and ‘neutral’ for TSMC and INTC, as of early Thursday.
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