synopsis

Chip stocks are bearing the brunt of President Donald Trump’s import tariffs on China, fueling concerns about how these measures will impact the global tech supply chain.

Semiconductor companies with significant exposure to China, including Nvidia Corp. (NVDA), Broadcom Inc. (AVGO), and Applied Materials Inc. (AMAT), saw their shares fall in pre-market trading Monday. 

However, retail investors on Stocktwits are more optimistic about these stocks, showcasing bullish sentiment.

The decline comes amid growing investor concerns over how President Donald Trump’s sweeping import tariffs on goods from Canada, Mexico, and especially China, could disrupt the global tech supply chain.

These concerns are adding to existing anxieties in the chip sector following China’s DeepSeek unveiling of low-cost artificial intelligence models that claim to rival Western technologies.

Nvidia Sentiment and Message Volume on Feb.3 as of 6:55 a.m. ET | Source: Stocktwits

Nvidia’s stock fell more than 3.5% in pre-market trading, extending its sharp decline from last week. 

Despite the drop, retail sentiment on Stocktwits remained ‘extremely bullish’, accompanied by ‘extremely high’ levels of chatter. 

Nvidia derives around one-third of its revenue from China, according to FinChat. 

The stock is down 16% over the last week – a loss larger than the entire market cap of Europe’s most valuable company, Novo Nordisk –  driven by fears that cheaper AI models from China could reduce demand for Nvidia’s high-cost AI processors. 

However, despite the recent downturn, Nvidia’s stock is still holding onto gains of over 95% over the past year.

Broadcom Sentiment and Message Volume on Feb.3 as of 7:00 a.m. ET | Source: Stocktwits

Broadcom slipped nearly 2% in pre-market trading, though retail sentiment on Stocktwits remained ‘extremely bullish’ accompanied by ‘extremely high’ levels of message volume. 

Despite the dip, Broadcom’s stock is still up 86% over the last year.

Applied Materials Sentiment and Message Volume on Feb.3 as of 7:05 a.m. ET | Source: Stocktwits

Applied Materials saw its shares fall by almost 2.5% pre-market, but unlike its peers, investor sentiment on Stocktwits dipped to ‘neutral’ with message volume at ‘high’ levels.

Approximately 40% of Applied Materials’ revenue comes from China in 2024, according to FinChat. 

Other major players in the wafer fabrication equipment (WFE) space, such as ASML Holding NV (ASML), KLA Corp. (KLAC), and Lam Research Corp. (LRCX), also face significant exposure to China, with 37% to 50% of revenue tied to the region. 

Despite recent losses, Applied Materials’ stock has gained nearly 10% over the past year.

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