From Nasdaq: 2025-03-24 15:48:00

Semiconductor stocks like Taiwan Semiconductor Manufacturing (TSM), Advanced Micro Devices (AMD), and Monolithic Power Systems (MPWR) surged today amid reports of a possible exemption from upcoming tariffs by the Trump administration on semiconductors and other industrial sectors.

The Trump administration plans to exclude sector-specific tariffs on automobiles, semiconductors, and pharmaceuticals from the April 2 tariffs, likely due to conversations with industry CEOs. This could benefit semiconductor companies that rely on manufacturing in East Asia, even as efforts to boost chip production in the U.S. continue.

AMD and Monolithic Power Systems could also see relief from potential tariffs, with the former producing CPUs and data center GPUs at TSMC in Taiwan, and the latter manufacturing chips in various East Asian countries. However, uncertainty remains about the scope of the upcoming tariffs and their impact on global trade and prices for consumers.

Despite the positive news for chip stocks, investors should remain cautious as the tariff situation is still evolving, potentially leading to increased prices and economic slowdown. While the reprieve could boost semiconductor growth, broader market impacts could affect cyclical stocks, including those in AI. Long-term industry drivers should guide investment decisions.

For investors seeking potentially lucrative opportunities, the Motley Fool is issuing “Double Down” stock recommendations for companies with significant growth potential, similar to past successes like Nvidia, Apple, and Netflix. These alerts could offer a second chance to invest in high-growth companies before they take off.



Read more at Nasdaq: Why Semiconductor Stocks Like Taiwan Semiconductor Manufacturing, Advanced Micro Devices, and Monolithic Power Rallied Today