ProShares Ultra Semiconductors (ARCA: USD)

Últimas noticias sobre ProShares Ultra Semiconductors (ARCA:USD)

ProShares Ultra Semiconductors

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The Fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The Index is constructed and maintained by S&P Dow Jones Indices LLC. The Index is designed to measure the stock performance of U.S. companies in the semiconductors subsector. Component companies include, among others, those engaged in the production and distribution of semiconductors and other integrated chips, as well as other related products such as semiconductor capital equipment and motherboards. The Index is published under the Bloomberg ticker symbol DJUSSC.

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MRVL

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Las acciones de Nvidia, AMD, Qualcomm y más suben tras los resultados de Taiwan Semiconductor, a pesar de las nuevas restricciones de EE.UU.

Acciones de chips de IA suben tras informe optimista de Taiwan Semiconductor

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Los racks Blackwell de Nvidia enfrentan retrasos por problemas técnicos. Las sanciones de EEUU podrían afectar hasta el 50% de sus ingresos.

Nvidia enfrenta retrasos por problemas en racks Blackwell y sanciones de EEUU

TSLA

Taiwan Semiconductor lidera con su tecnología de 2 nm, expandiendo la producción global mientras enfrenta desafíos geopolíticos.

Taiwan Semiconductor (TSM): Progreso en chips de 2 nm y crecimiento global

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<a href="https://www.benzinga.com/topic/ai-chips" target="_blank" rel="noreferrer noopener">Artificial intelligence chip stocks</a> including Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Marvell Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Arm Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), and Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), are trading higher Thursday in sympathy with Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) <a href="https://www.benzinga.com/news/earnings/25/01/43022654/taiwan-semiconductor-q4-earnings-3nm-and-5nm-nodes-lead-topline-growth-expands-margins-issues-strong-q1-outlook" target="_blank" rel="noreferrer noopener">upbeat quarterly print</a>.
Taiwan Semiconductor is the key contract chipmaker behind Nvidia&#8217;s graphics processing units&nbsp;(GPU) and Apple Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) smartphones.
However, on Wednesday, the Biden administration announced its <a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" target="_blank" rel="noreferrer noopener">latest semiconductor regulations</a>, including extended licensing requirements on companies like Taiwan Semiconductor, which manufactures chips, and packaging companies, citing national security threats.
Also Read: <a href="https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share" target="_blank" rel="noreferrer noopener">Apple And Nvidia Supplier Taiwan Semiconductor Leads Semiconductor Market with 64% Share</a>
Chipmakers like Taiwan Semiconductor and&nbsp;Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) must <a href="https://www.benzinga.com/25/01/43003008/taiwan-semi-samsung-intel-may-face-stricter-us-rules-on-chip-exports-to-china-over-security-concerns" target="_blank" rel="noreferrer noopener">ramp up due diligence</a> especially with China-based firms.
Washington imposed sanctions on 16 Chinese companies, including Sophgo Technologies, for building their country&#8217;s chip industry, Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-01-15/us-unveils-new-rules-to-restrict-flow-of-advanced-chips-to-china?srnd=phx-technology&amp;sref=TBDibEcD" target="_blank" rel="noreferrer noopener">cites</a> the Commerce Department.
On Monday, the U.S. disclosed sanctions on the sale of AI chips by Nvidia and other advanced makers to data centers in most countries.
The rules for AI chips follow&nbsp;controls&nbsp;announced in December that aim to block Beijing&#8217;s access to <a href="https://www.benzinga.com/government/24/08/40198085/huawei-and-baidu-increase-samsung-hbm-purchases-as-us-curbs-loom" target="_blank" rel="noreferrer noopener">high-bandwidth memory</a> chips from Micron.
Semiconductor chip stocks enjoyed a massive upside in 2024, backed by the AI boom.
A third of the top ten global companies with valuations above $1 trillion in 2024 came from the chip industry.
Investors can gain exposure to stocks of companies that manufacture semiconductors through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
Also Read:
<ul>
<li><a href="https://www.benzinga.com/tech/25/01/43008511/broadcoms-latest-san-switch-offers-scalable-energy-efficient-solution-for-growing-storage-demands" target="_blank" rel="noreferrer noopener">Broadcom&#8217;s Latest SAN Switch Offers Scalable, Energy-Efficient Solution for Growing Storage Demands</a></li>
</ul>
Photo via Shutterstock

AI Chip Stocks Gain Momentum On Taiwan Semiconductor Performance;  Biden's Semiconductor Sanctions Kick In

Nvidia&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">U.S. Big Tech customers</a>, including Microsoft&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Amazon.com Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web Services, Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)&nbsp;&nbsp;Google, and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) postponed Blackwell GB200 rack orders due to overheating problems, Reuters cites the Information.
A data center rack accommodates chips and cables. Reportedly, Nvidia&#8217;s hyperscalar customers had placed orders worth $10 billion or more.
The first rack shipments with Blackwell chips reportedly exhibited glitches in the chips&#8217; connections, prompting customers to postpone orders for an updated version or purchase the company&#8217;s older AI chips.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42924519/nvidia-amd-broadcom-lead-semiconductor-stock-decline-amid-us-china-ai-chip-export-ban-concerns-amd-downgraded-by-goldman-sachs-and-more" rel="noreferrer noopener">Nvidia, Broadcom Among Goldman Highlights For AI Opportunities</a>
The Biden administration&#8217;s potential <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">AI chip and technology exports</a> posed a double whammy for Nvidia.
The ten leading global semiconductor companies slashed their capital expenditure plans to tackle overcapacity and weakening demand in electric vehicles and smartphones, with artificial intelligence offering minimal respite, Nikkei Asia <a target="_blank" href="https://asia.nikkei.com/Business/Tech/Semiconductors/Chipmakers-cut-investment-plans-by-9.5bn-on-smartphone-EV-slump" rel="noreferrer noopener">reports</a>.
Capex plans for each company&#8217;s fiscal 2024&nbsp;dropped&nbsp;to $123.3 billion (down by 2%), implying a decline of $9.5 billion from their May estimates, which predicted a 6% growth.
DA Davidson&#8217;s Gil Luria told Reuters he expects the U.S. embargo to significantly affect (Nvidia&#8217;s) market as up to 50% of its chips end up in countries that will be off-limits once the rules kick in. Dan Coatsworth of AJ Bell also voiced similar concerns about the sanctions to Reuters.
Reuters cites the company&#8217;s regulatory disclosures as indicating that Nvidia generates ~56% of its revenue from customers outside the U.S., with China making up about 17% of sales.
Nvidia Vice President of Government Affairs Ned Finkle and the Semiconductor Industry Association had expressed dissatisfaction with the U.S. semiconductor sanctions that would hinder Nvidia&#8217;s growth potential.
Interestingly, the U.S. sanctions will benefit the U.S. Big Tech giants as they can grow their market share by seeking approval to establish data centers in countries affected by the embargo.
Investors will closely watch for President-elect Donald Trump&#8217;s take on the potential semiconductor embargo.
Investors can gain exposure to stocks of companies that manufacture semiconductors through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
Price Action: NVDA stock traded higher by 1.53% to $135.27 premarket at the last check on Tuesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/01/42947562/taiwan-semiconductor-begins-4nm-chip-production-in-arizona-eyes-11-4-billion-q4-profit" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor Begins 4nm Chip Production in Arizona, Eyes $11.4 Billion Q4 Profit</a></li>
</ul>
Photo by Tatiana Popova and rawf8 via Shuttterstock

GOOG

US Semiconductor Sanctions Spell Trouble for Nvidia, But May Benefit Big Tech

As Washington ramps up chip export restrictions to unfriendly countries, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) are in the midst of a geopolitical power shift that could disrupt the semiconductor <a href="https://www.benzinga.com/topic/semiconductors">industry&#8217;s global landscape.</a>
In a report shared Monday, Bloomberg outlined the Biden administration&#8217;s imminent release of updated export <a href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report">rules targeting advanced semiconductors. </a>
The new measures, expected to drop Friday, intensify the U.S.&#8217;s strategic efforts to slow China's technological and military advancements by restricting access to high-performance computing chips.
<h3 class="wp-block-heading">New AI Export Framework: Allies And Adversaries</h3>
The regulations will reportedly create a three-tiered structure for semiconductor exports, emphasizing access tiers for key U.S. allies, neutral nations, and restricted countries. 
China is expected to fall under the most severe tier, joining nations such as Russia, Iran, and Venezuela.
This tier-based framework allows certain companies in restricted countries to bypass national limits by agreeing to U.S. security protocols and human rights standards. 
These entities, designated as validated end users, would have higher caps for chip purchases, a move aimed at encouraging safer AI development globally.
The measures expand the sweeping export restrictions initiated in October 2022, which already limited sales of advanced AI chips like Nvidia's Hopper GPUs. 
These earlier rules also prohibited U.S. firms and individuals from supporting Chinese chip development without explicit government approval. 
<h3 class="wp-block-heading">Nvidia And AMD Under Scrutiny</h3>
Nvidia's specialized A800 and H800 chips, developed to comply with prior regulations, could now fall under new restrictions, potentially denting AI giant&#8217;s upcoming revenues. 
According to data firm FactSet, China accounts for approximately 16% of Nvidia&#8217;s revenue, making it the company's second-largest market after the U.S. This marks a decline from 25% prior to the 2022 export restrictions.
In 2023, AMD generated roughly $3.4 billion in revenue from China, including Hong Kong, according to Statista. This represents 15% of the company&#8217;s total revenue of $22.7 billion.
<h3 class="wp-block-heading">Key ETFs Tied To Nvidia And AMD</h3>
Several ETFs heavily exposed to Nvidia and AMD could face ripple effects:
Top ETFs Holding Nvidia (Percentage of Holdings):
<ul>
<li>ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>): 34.96%</li>
<li>Strive U.S. Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NASDAQ">SHOC</a>): 21.10%</li>
<li>YieldMax Target 12 Semiconductor Option (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXY#NASDAQ">SOXY</a>): 20.50%</li>
<li>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>): 20.21%</li>
<li>VanEck Fabless Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMHX#NASDAQ">SMHX</a>) – 20.11%</li>
</ul>
Top ETFs Holding AMD (Percentage of Holdings):
<ul>
<li>VanEck Video Gaming and Esports ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESPO#NASDAQ">ESPO</a>): 8.01%</li>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>): 7.12%</li>
<li>AOT Growth and Innovation ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AOTG#NASDAQ">AOTG</a>): 7.07%</li>
<li>Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>): 7.04%</li>
<li>REX FANG &amp; Innovation Equity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>): 6.95%</li>
</ul>
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/01/42888800/goldman-sachs-flags-market-correction-risk-as-inflation-trump-policies-stir-uncertainty">Goldman Sachs Flags Market Correction Risk As Inflation, Trump Policies Stir Uncertainty</a></li>
</ul>
Image created using photos from Shutterstock.

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Global

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AOTG

ESPO

FEPI

EA Series Trust Strive U.S. Semiconductor ETF

SHOC

SMHX

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

SOXY

Biden's Final Chip Curbs Set To Shake AI Markets: 10 ETFs With High Stakes In Nvidia, AMD

<a href="https://www.benzinga.com/topic/semiconductors" target="_blank" rel="noreferrer noopener">Semiconductor chips stocks</a>, including Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), STMicroelectronics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STM#NYSE">STM</a>), Marvell Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) surged during premarket trading on Monday ahead of the Consumer Electronics Show (CES) in Las Vegas on Tuesday.
The investor enthusiasm also reflects Big Tech giant Microsoft Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) plans to commit <a href="https://www.benzinga.com/25/01/42804813/microsofts-80-billion-investment-outlay-musks-battle-with-openai-and-nvidias-billion-dollar-bet-this-week-in-artificial-intelligence" target="_blank" rel="noreferrer noopener">$80 billion to</a> developing AI data centers in fiscal 2025. 
Additionally, Foxconn, also known as Hon Hai Technology, reported robust revenue in <a href="https://www.benzinga.com/news/earnings/25/01/42808796/foxconn-posts-record-revenue-rides-high-on-ai-server-demand-and-nvidia-partnership" target="_blank" rel="noreferrer noopener">the fourth quarter</a>, backed by cloud and networking products revenue and AI server demand.
Also Read: <a href="https://www.benzinga.com/25/01/42793170/alibaba-cloud-joins-forces-with-ex-google-execs-unicorn-to-boost-ai-models" target="_blank" rel="noreferrer noopener">Alibaba Cloud Joins Forces With Ex-Google Exec&#8217;s Unicorn To Boost AI Models</a>
The Taiwanese Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Nvidia supplier&#8217;s revenue grew by over 15%, reaching $64.8 billion. December revenue grew by over 42% to $19.9 billion.
Investors expect Nvidia to offer positive pointers at CES, as Focus Taiwan <a href="https://focustaiwan.tw/business/202501060009" target="_blank" rel="noreferrer noopener">cites</a> MasterLink Securities analyst Tom Tang alluding to Nvidia chief Jenseng Huang&#8216;s keynote speech at the event.
The semiconductor chip stocks had a remarkable run in 2024, backed by the AI frenzy, pivotal to the S&amp;P 500 and Nasdaq index&#8217;s&nbsp;gains of 23%—29% in 2024.
Last year, a third of the 10 global companies worth over $1 trillion valuation were from the chip industry.
Notably, Nvidia&#8217;s valuation <a target="_blank" href="https://www.benzinga.com/25/01/42793394/nvidias-2-trillion-ai-rally-fueled-by-chips-startups-and-robotics" rel="noreferrer noopener">surged by over</a> $2 trillion in 2024, breaching the $3 trillion mark. This was backed by its GPUs, which initially targeted video games but ended up being critical hardware for developing AI models. Broadcom joined the&nbsp;trillion-dollar club&nbsp;in 2024, supported by demand for its custom chips.
Contract chipmaker Taiwan Semiconductor <a target="_blank" href="https://www.benzinga.com/25/01/42784508/taiwan-semiconductors-2nm-progress-fuels-taiwan-index-musk-highlights-talent-pool" rel="noreferrer noopener">remains on track</a> to produce 2nm chips&nbsp;in Taiwan and commercialize 4nm chips at its Arizona fab. It is a key supplier to companies such as Apple, Nvidia, AMD, and more.
Dan Ives of Wedbush expects tech stocks to post a 25% gain in 2025, backed by favorable policies from President-elect Donald Trump and Big Tech spending.
Investors can gain exposure to semiconductor stocks through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/42772915/li-auto-rerated-on-new-model-pipeline-and-autonomous-driving-advances-analyst" target="_blank" rel="noreferrer noopener">Goldman Sachs Sees Strong Upside In Li Auto on New Model Pipeline and Autonomous Driving Advances</a></li>
</ul>
Photo: Shutterstock

SMCI

AI Chip Stocks Nvidia, Broadcom, AMD, Taiwan Semi, Micron, Super Micro Surge Premarket: Whats Going On?

Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plan to <a target="_blank" href="https://www.benzinga.com/24/12/42721526/taiwan-semiconductors-kaohsiung-expansion-to-boost-jobs-and-2-nm-chip-production" rel="noreferrer noopener">produce 2nm chips</a> in Taiwan is progressing steadily as the contract chipmaker prepares to begin commercializing 4nm chips at its Arizona fab.
The chipmaker has completed limited risk production of ~5,000 wafers leveraging its 2nm process at the Baoshan fab in Hsinchu Science Park, TechNode <a target="_blank" href="https://technode.com/2025/01/03/tsmc-completes-risk-production-of-2nm-process-with-5000-wafers/" rel="noreferrer noopener">reports</a>.&nbsp;
Taiwan Semiconductor has planned to roll out its 2nm production at the Baoshan and Kaohsiung fabs.
Also Read: <a target="_blank" href="https://www.benzinga.com/media/25/01/42762874/broadcom-thrives-with-114-stock-surge-in-ai-boom-while-intel-faces-steep-decline" rel="noreferrer noopener">Broadcom Thrives with 114% Stock Surge in AI Boom, While Intel Faces Steep Decline</a>
During an earnings call, Taiwan Semiconductor Chair C.C. Wei said the company does not expect a shift toward chipset designs driven by high-performance computing (HPC) to affect its 2nm production.
Wei said that growing interest in 2nm has increased demand, surpassing 3nm.
Taiwan Semiconductor launched the N2P process technology to support smartphone and high-performance computing (HPC) applications. Mass production will begin in the second half of 2026, he added.
Shares in Taiwan closed higher on Friday, buoyed by gains in the electronics sector, particularly Taiwan Semiconductor, the most extensive stock by market weight.
The Taiex showed resilience despite mixed signals from U.S. markets, which saw slight declines in the Dow Jones Industrial Average and Nasdaq index on Thursday, Focus Taiwan <a target="_blank" href="https://focustaiwan.tw/business/202501030010" rel="noreferrer noopener">reports</a>.
Analysts credited Taiwan Semiconductor&#8217;s strong performance for lifting the Taiex, contributing 80 points to the index&#8217;s rise.
Elon Musk, CEO of Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) also highlighted Taiwan&#8217;s significant technical expertise as the foundation of its semiconductor industry&#8217;s success in an X post on December 28, where he praised the island&#8217;s talent pool in response to a discussion about Taiwan Semiconductor, Focus Taiwan <a target="_blank" href="https://focustaiwan.tw/business/202501030007" rel="noreferrer noopener">reports</a>.
Responding to a post by Bojan Tunguz, a former data scientist at Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Musk credited Taiwan&#8217;s untapped talent pool for Taiwan Semiconductor&#8217;s dominance.
Tunguz had criticized the U.S. tech industry&#8217;s historical anti-immigrant biases, arguing they led Morris Chang to establish Taiwan Semiconductor in Taiwan rather than the U.S.
Taiwan Semiconductor plays a critical role in global chip production, holding a 64.9% market share in the third quarter of 2024, Focus Taiwan cites TrendForce.
Musk&#8217;s recent praise contrasts with his earlier comments on Taiwan&#8217;s geopolitical status. In 2022, he suggested Taiwan could be designated a &#8220;special administrative zone&#8221; to ease tensions with China, likening Taiwan&#8217;s relationship with China to Hawaii&#8217;s ties with the U.S.
Donald Trump has also voiced concerns over <a target="_blank" href="https://www.benzinga.com/news/24/11/41780976/chip-stocks-like-nvidia-broadcom-taiwan-semi-gain-after-trump-win-whats-going-on" rel="noreferrer noopener">trading with Taiwan</a>. Previously, Trump expressed concerns about trade with Taiwan, accusing the country of undermining the U.S. chip industry.
He criticized the CHIPS Act and vowed to impose tariffs on Taiwanese chips if elected. Trump questioned the U.S. defense position with Taiwan, citing the absence of a formal treaty, and opposed federal CHIPS Act funding for foreign companies like Taiwan Semiconductor.
Taiwan Semiconductor stock surged over 101% in the last 12 months.
Investors can gain exposure to the semiconductor stocks through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>).
Price Action: TSM stock is up 0.92% to $203.43 premarket at the last check on Friday.
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</ul>
Image via Shutterstock

What's Going On With Taiwan Semiconductor Stock On Friday?

<a target="_blank" href="https://www.benzinga.com/topic/taiwan" rel="noreferrer noopener">Contract chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) plans to build its fourth and fifth <a target="_blank" href="https://www.benzinga.com/24/12/42699969/taiwan-semiconductor-expands-in-taiwan-five-new-factories-aim-to-strengthen-chipmaking-industry" rel="noreferrer noopener">wafer fabs in Kaohsiung</a> in 2025, accommodating advanced processes.
The two facilities, P4 and P5, are part of Taiwan Semiconductor&#8217;s program, which targets building five fabs in Kaohsiung, according to a Taipei Times <a target="_blank" href="https://www.taipeitimes.com/News/biz/archives/2024/12/30/2003829322" rel="noreferrer noopener">report</a>.
On Thursday, Taiwan Semiconductor Vice President Arthur Chuang told the TT that the five facilities could add 8,000 jobs.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42709635/super-micro-and-nvidia-expand-in-taiwan-with-green-energy-and-ai-projects" rel="noreferrer noopener">Super Micro and Nvidia Expand in Taiwan with Green Energy and AI Projects</a>
The P4 and P5 fabs would be located next to the third fab, P3, and their construction will likely finish in 2027. Taiwan Semiconductor said its first fab in Kaohsiung, P1, will begin commercializing the advanced 2-nm process in 2025.
The 2-nm process would be faster than N3E, an updated variant of the 3-nm process, with higher density and lower power consumption.
The second fab, P2, would likely be completed in 2025. It would also use the 2-nm process, while construction of the third fab will likely finish in 2026.
At an investor conference, Taiwan Semiconductor Chair C.C. Wei flagged higher interest in its 2-nm process than the 3-nm process, prompting it to ramp in 2-nm production capacity.
Taiwan Semiconductor already has a 2-nm wafer plant in Baoshan, Hsinchu County, which will likely start commercialization in 2025.
The chipmaker&#8217;s commercialization of the A16 process is scheduled for the first half of 2026.
Despite intensifying geopolitical tensions, Taiwan Semiconductor remains committed to maintaining its advanced semiconductor technologies in its home country.
In September, President Joe Biden authorized <a target="_blank" href="https://www.benzinga.com/24/12/42709635/super-micro-and-nvidia-expand-in-taiwan-with-green-energy-and-ai-projects" rel="noreferrer noopener">$567 million in</a> defense aid for Taiwan, enhancing its military strength amid growing tensions with China. The U.S. also approved a $228 million military sale to bolster Taiwan&#8217;s aircraft combat capabilities.
On Friday, Taiwan&#8217;s science ministry warned that funding for semiconductors and AI could be hit by 20 billion New Taiwan dollars ($609.11 million) for 2025 after opposition parties pitched for laws to slash economic and technology spending, Reuters reports.
The Ministry of Economic Affairs on Tuesday flagged repercussions on Taiwan&#8217;s collaboration with Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), which are also key Taiwan Semiconductor clients.
Investors can gain exposure to the semiconductor stocks through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
Price Action: TSM stock is down 0.96% to $199.70 premarket at the last check on Monday.
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</ul>
Image via Shutterstock

Emerging Markets

Taiwan Semiconductor's Kaohsiung Expansion To Boost 2-nm Chip Production

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;stock slid in the premarket Monday after a Chinese regulator said it was investigating the chipmaker over a possible breach of the country&#8217;s antitrust regulations.
The State Administration for Market Regulation alleged the chip designer violated its obligations while acquiring Mellanox Technologies, Reuters reports. Previously, Nvidia&#8217;s potential acquisition of Arm Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) succumbed to global regulatory opposition.
Also Read: <a href="https://www.benzinga.com/24/12/42385349/chinese-social-media-company-hello-group-gains-after-q3-print-ceo-flags-overseas-growth" target="_blank" rel="noreferrer noopener">Chinese Social Media Company Hello Group Gains After Q3 Print, CEO Flags Overseas Growth</a>
Nvidia&#8217;s <a href="https://www.benzinga.com/government/24/11/41685490/nvidias-run-ai-acquisition-draws-european-regulatory-scrutiny-on-competition-concerns">offer to acquire</a> Run:ai has drawn regulatory attention from&nbsp;the European Commission. 
In 2024, U.S. antitrust authorities scrutinized Nvidia over possible influence within the artificial intelligence chip sector. The Justice Department sought Nvidia&#8217;s contract and partnership details. Additionally, the Federal Trade Commission (FTC) is reviewing investments by major technology firms.
The U.S. and China remained embroiled in geopolitical tensions as the Biden administration. imposed semiconductor sanctions on China, thereby restricting the country&#8217;s access to advanced artificial technology chips and GPUs of Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Nvidia.
Reportedly, Nvidia could earn&nbsp;$12 billion in sales&nbsp;from 1 million H20 GPUs in <a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42265847/biden-targets-china-with-new-chip-restrictions-nvidia-slides" rel="noreferrer noopener">China in 2024</a>.&nbsp;
Last week, the U.S. launched its third semiconductor sanction on China, which focused on the export of advanced chips and chipmaking equipment to China. China retaliated by&nbsp;<a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42344223/struggling-chipmaker-microchip-hits-pause-on-biden-semiconductor-subsidy" rel="noreferrer noopener">exercising tighter controls</a>&nbsp;on the export of critical minerals used in&nbsp;advanced chip manufacturing.
Since his campaign days, President-elect Donald Trump has threatened to slap tariffs on exports to China of <a target="_blank" href="https://www.benzinga.com/government/24/11/41806635/whats-going-on-with-us-listed-chinese-stocks-like-alibaba-jd-nio-on-thursday" rel="noreferrer noopener">up to 60%</a>, prompting China to launch fiscal stimulus to drive the economy and protect itself from the tariffs. The tariffs could reduce Chinese exports to the U.S. by about $200 billion and affect China&#8217;s GDP.
Trump&#8217;s threats to launch a <a target="_blank" href="https://www.benzinga.com/24/11/42216863/nvidia-intel-suppliers-rethink-mexico-operations-amid-trumps-tariff-threat" rel="noreferrer noopener">25% tariff on</a> Mexican imports prompted Nvidia and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) suppliers to reconsider Mexico operations.
Nvidia stock surged 196% year-to-date. Investors can gain exposure to the stock through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and EA Series Trust Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>).
Price Action: NVDA stock is down 1.85% at $139.86 at last check Monday.
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</ul>
Photo by William Potter on Shutterstock

Movers

INTC

Nvidia Hit With Antitrust Probe in China, Stock Slides

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>)&nbsp;and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;are exploring production of the front-end process of Blackwell artificial intelligence chips at the former Arizona plant, Reuters cites familiar sources.
Taiwan Semiconductor has so far manufactured Nvidia's Blackwell chips in its Taiwan facilities, where its chip-on-wafer-on-substrate (CoWoS) capacity exists.
Also Read: <a target="_blank" href="https://www.benzinga.com/tech/24/12/42296590/zjk-industrial-surges-after-nvidia-ai-server-deal" rel="noreferrer noopener">ZJK Industrial Surges On Nvidia Liquid Cooling Collaboration (UPDATED)</a>
Therefore, it must ship the Blackwell chips back to Taiwan for packaging, which renders Nvidia vulnerable to U.S. geopolitical tensions with China.
For context, China continued threats and military <a target="_blank" href="https://www.benzinga.com/government/24/07/39857131/ai-chip-stocks-nvidia-amd-taiwan-semi-saw-a-selloff-this-week-whats-going-on" rel="noreferrer noopener">exercises around Taiwan</a>. Meanwhile, most of Taiwan Semiconductor's production capacity is based in Taiwan.
The key Nvidia supplier targets mass production of the Blackwell chips in early 2025.
Taiwan Semiconductor's current Arizona plant customers reportedly include Apple&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)&nbsp;and Advanced Micro Devices Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).
Earlier this week, Amazon.Com Inc's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) cloud unit claimed that it could <a target="_blank" href="https://www.benzinga.com/markets/24/12/42325881/amazon-takes-on-nvidia-with-cheaper-ai-supercomputers-servers" rel="noreferrer noopener">connect more chips</a> than Nvidia and could train some AI models at a 40% discount to Nvidia chips.
Amazon Web Services showcased its data center servers embedded with its AI&nbsp;chips, dubbed Trn2 UltraServers. These servers target&nbsp;Nvidia's flagship server, which is packed with the latest Blackwell chips.
Amazon also disclosed that it is building artificial intelligence&nbsp;supercomputers in collaboration with Anthropic, which will feature Amazon's latest AI training chip, Trainium 2. Previous reports claimed Nvidia's production challenges of Blackwell chips hampered AWS' data center plans.
Despite production challenges, Oppenheimer&nbsp;analyst Rick Schafer&nbsp;projected <a target="_blank" href="https://www.benzinga.com/24/11/42005107/nvidia-set-for-gains-from-ai-cloud-demand-blackwell-launch-and-data-center-expansion-analyst-notes" rel="noreferrer noopener">several billion dollars</a> in revenue from Blackwell for the January quarter. He noted investors are modeling between 5 and 6 million Blackwell GPUs in 2025.
Nvidia stock has surged over 201% year-to-date. Taiwan Semiconductor stock gained 98%.
Investors can gain exposure to Nvidia through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and EA Series Trust Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>).
Price Actions:&nbsp;NVDA stock traded lower by 0.02% at $145.10 premarket at the last check on Thursday. TSM is up 0.37%.
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</ul>
Photo courtesy of Nvidia

Nvidia Could Become Taiwan Semi's Third US Plant Customer, But With A Catch

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) showcased a groundbreaking generative AI <a target="_blank" href="https://blogs.nvidia.com/blog/fugatto-gen-ai-sound-model/" rel="noreferrer noopener">model </a>named Fugatto. This model is designed as a versatile tool for creating and modifying sounds using text and audio prompts. Fugatto can generate and transform a mix of music, voices, and soundscapes, offering unprecedented capabilities to musicians, developers, and content creators.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/11/42139806/echostar-shares-sink-as-directv-terminates-acquisition-agreement" rel="noreferrer noopener">EchoStar Shares Sink As DirecTV Terminates Acquisition Agreement</a>
Fugatto, short for Foundational Generative Audio Transformer Opus 1, supports multiple tasks, such as generating new music, altering accents or emotions in voices, and crafting entirely novel soundscapes. These features mark a significant leap in audio AI innovation.
Fugatto empowers users to create audio that combines various instructions and prompts. For example, it can produce a trumpet sound mimicking a barking dog or generate a voice with a specific accent and tone.
Beyond music, Fugatto opens possibilities for advertising, education, and gaming. Advertisers can adjust campaign voiceovers for regional audiences, while educators can personalize content with voices familiar to learners. Game developers can modify audio assets or generate them dynamically based on gameplay.
Fugatto, powered by a 2.5-billion-parameter generative transformer, was trained on Nvidia DGX systems with 32 H100 Tensor Core GPUs. Its development involved a diverse team spanning several countries, which enhanced its multilingual and multi-accent capabilities. The model&#8217;s training relied on millions of audio samples, carefully curated to enable complex and diverse tasks.
Fugatto&#8217;s debut signifies a milestone in generative AI, promising to reshape how professionals interact with sound.
The model enables users to combine attributes like accent, tone, and emotion into one cohesive sound. For instance, it can create a dynamic soundscape transitioning from a thunderstorm to a tranquil dawn.
Nvidia stock surged 186% year-to-date.
Last week, Nvidia reported a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42099904/nvidia-beats-q3-revenue-eps-estimates-supply-constraints-ding-stock-huang-says-age-of-ai-is-in-full-steam" rel="noreferrer noopener">third-quarter revenue</a> of $35.1 billion, up 94%, beating the consensus estimate of $33.12 billion.
The company reported EPS of 81 cents, which beat the Street consensus estimate of 75 cents. Nvidia expects fourth-quarter revenue to be $37.5 billion plus or minus 2%.
Analysts highlighted Nvidia&#8217;s leadership in AI and data center technologies, with robust demand for its Blackwell and Hopper <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42119226/nvidia-analysts-see-stock-best-positioned-in-ai-not-worried-about-guidance-all-systems-go-for-blackwell-ramp" rel="noreferrer noopener">product lines driving growth through 2025.</a>
Investors can gain exposure to Nvidia through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and EA Series Trust Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>).
Price Action: NVDA stock is down 2.7% at $138.12 at last check Monday.
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</ul>
Photo via Shutterstock.

Equities

General

Nvidia Unveils Fugatto: AI Tool That Transforms Sound Creation For Music, Ads, And Gaming

As Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) hit all-time highs with 234.09% returns in the past year, several exchange-traded funds (ETFs) associated with the Jensen Huang-led chip giant have also demonstrated remarkable growth during the same time frame, reflecting the company&#8217;s significant market influence.
What Happened: According to <a href="https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/holdings/">Benzinga Pro</a>, the GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) being entirely invested in Nvidia, saw a remarkable increase of 479.94%.
Meanwhile, ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which has a 53.92% stake in Nvidia, climbed by 290.18%.
The Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) with an 8.15% holding in Nvidia surged by 111.65%, while the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose by 50.49%, holding 9.69% in Nvidia. The Strive US Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>) which maintains a 26.04% Nvidia holding, increased by 51.19%.
See Also: <a href="https://www.benzinga.com/general/entertainment/24/10/41348553/jay-z-praised-by-warren-buffett-as-the-guy-to-learn-from-once-said-he-wasnt-taught-emotiona?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Jay-Z, Praised by Warren Buffett as &#8216;The Guy to Learn From,&#8217; Once Said He Wasn&#8217;t Taught Emotional Intelligence, But How To Survive — The Rap Legend&#8217;s Growth Has Made Him Not Just A Better Person, But Also Worth $2.5B Today</a>
The Simplify Volt RoboCar Disruption (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>) gained 34.66%, with 22.83% invested in Nvidia. Lastly, the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) rose by 76.50%, holding 22.69% in Nvidia.
Why It Matters: The impressive performance of Nvidia-linked ETFs can be attributed to the company&#8217;s strong market position and the increasing demand for its products. Recently, <a href="https://www.benzinga.com/news/24/10/41437976/nvidia-stock-hits-all-time-high-ahead-of-big-tech-earnings-whats-going-on">Nvidia&#8217;s stock reached an all-time high</a>, driven by the surge in artificial intelligence demand. Since the beginning of the year, Nvidia shares have risen over 186%, showcasing the company&#8217;s significant growth trajectory.
Furthermore, <a href="https://www.benzinga.com/government/24/10/41462536/nvidia-accelerates-global-growth-eyes-ai-chip-development-in-india-and-expansion-in-thailand">Nvidia is expanding globally</a>, with plans to develop AI chips in India and expand in Thailand. This strategic expansion aims to bolster domestic semiconductor supply chains, further solidifying Nvidia&#8217;s market dominance.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41420178/bitcoin-ethereum-dogecoin-on-the-rise-as-uptober-may-be-finally-here-analysts-predict-bull?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin On The Rise As &#8216;Uptober&#8217; May Be Finally Here: Analysts Predict Bullish Breakout For King Crypto, ETH&#8217;s Rally To $3,300</a></li>
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Markets

NVDL

SOXL

Simplify Volt RoboCar Disruption and Tech ETF

VCAR

While Nvidia Shares Are Hitting All-Time High With Over 230% Return In The Past Year, Some ETFs Linked To Jensen Huang's Chip Giant Have Surged By Almost 500%: Here's More

Nvidia&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recently made significant product launches amid a <a target="_blank" href="https://www.benzinga.com/news/24/10/41119735/nvidia-faces-new-competition-cerebras-files-for-ipo-huawei-pushes-ai-chips" rel="noreferrer noopener">volatile run as </a>the Street factors in the company&#8217;s customer concentration and delays in product releases like its&nbsp;Blackwell GPUs.
The chip designer launched an open-source artificial intelligence model, intensifying rivalry with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) backed ChatGPT parent OpenAI and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, Venture Beat <a target="_blank" href="https://venturebeat.com/ai/nvidia-just-dropped-a-bombshell-its-new-ai-model-is-open-massive-and-ready-to-rival-gpt-4/" rel="noreferrer noopener">reports</a>.
Nvidia&#8217;s new&nbsp;NVLM 1.0&nbsp;family of large multimodal language models also enhances text-only capabilities in addition to vision and language tasks.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/10/41127863/despite-nvidia-selloff-bidens-law-and-taiwan-semis-advantage-offer-growth-potential" rel="noreferrer noopener">Despite Nvidia Selloff, Biden&#8217;s Law and Taiwan Semi&#8217;s Advantage Offer Growth Potential</a>
Nvidia also launched its new Unreal Engine 5 on-device plugins for&nbsp;Nvidia Ace at&nbsp;Unreal Fest Seattle 2024, helping build and deploy AI-powered MetaHuman characters on Windows PCs, Venture Beat <a target="_blank" href="https://venturebeat.com/ai/nvidia-releases-plugins-to-improve-digital-human-realism-on-unreal-engine-5/" rel="noreferrer noopener">reports</a>.
Developers can now access a new Audio2Face-3D plugin for AI-powered facial animations in Autodesk, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADSK#NASDAQ">ADSK</a>)
Maya.&nbsp;
Nvidia stock lost over 4% in the last five days since China retaliated against U.S. artificial intelligence technology sanctions by urging its companies to reach out to domestic chipmakers instead of Nvidia. Huawei Technologies has started tapping Nvidia&#8217;s Chinese hyperscalar customers by offering them Ascend 910C processor samples.
Nvidia stock has risen over 161% in the last 12 months as US hyperscalars continue to drive up demand for its AI chips.
Investors can gain exposure to Nvidia through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
Price Action: NVDA stock is down 0.62% at $116.27 premarket at last check Wednesday.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/09/40980388/amd-chief-predicts-custom-chips-will-outperform-gpus-sees-shift-in-ai-chip-demand-report" target="_blank" rel="noreferrer noopener">AMD Chief Predicts Custom Chips Will Outperform GPUs, Sees Shift in AI Chip Demand: Report</a></li>
</ul>
Image via Shutterstock

ADSK

Nvidia Expands AI Offerings with New Open-Source Models and Unreal Engine 5 Plugins

Semiconductor, hardware, and artificial intelligence-linked stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are down as the sector continues to pull back.
AI stocks led by Nvidia, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) selloff continue their <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40746353/nvidia-super-micro-arm-tumble-2-in-premarket-most-chip-peers-deep-in-red-whats-dragging-down-sem" rel="noreferrer noopener">downward price trajectory</a> as the Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly prints failed to impress the Street.
Broadcom released its third-quarter earnings on Thursday. The <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu" rel="noreferrer noopener">topline grew 42%</a> to &nbsp;$13.07 billion in the third quarter, topping the analyst estimate of $12.96 billion. The chipmaker expects fourth-quarter revenue of $14 billion, above the analyst consensus of $12.70 billion. The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40740457/broadcom-inc-announces-third-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend" rel="noreferrer noopener">adjusted gross margin</a> grew by 110 bps sequentially and 230 bps year-on-year to 77.4%.
JPMorgan analyst Harlan Sur projected upside, citing robust AI growth, VMware momentum, and recovery in <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40750949/broadcom-analysts-lifts-ai-revenue-forecast-to-12b-on-potential-strong-demand-from-" rel="noreferrer noopener">traditional semiconductor sectors</a>.
Last week, Nvidia&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal" rel="noreferrer noopener">second-quarter topline</a> grew 122% to $30.04 billion, surpassing the analyst estimate of $28.68 billion. It expects third-quarter revenue of $31.85 billion-$33.15 billion versus the analyst consensus of $31.77 billion. The adjusted gross margin declined 320 bps sequentially and grew by 450 bps year-on-year.
BofA Securities analyst Vivek Arya maintained a bullish outlook backed by data center and AI training demand and <a target="_blank" href="https://www.benzinga.com/news/24/09/40737481/nvidias-future-tied-to-llms-and-gaming-despite-ai-capex-skepticism-remains-a-sector-favorite-analyst" rel="noreferrer noopener">supply chain recovery</a>.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), which tracks the overall performance of the 25 largest U.S.-listed companies that produce semiconductors, including Nvidia, Taiwan Semiconductor, Broadcom, and AMD, has been down 12% in the last five days. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) fell 12% in the previous five days.
Nvidia has been down 15% in the last five days. AMD lost over 10%, and Taiwan Semiconductor lost 8%. The selloff refused to subside despite assurances from <a target="_blank" href="https://www.benzinga.com/news/24/09/40735058/taiwan-semis-supplier-dismisses-selloff-projects-strong-ai-growth-surge" rel="noreferrer noopener">contract chipmakers like</a> Taiwan Semiconductor and Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) regarding sustained AI demand.
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which corresponds to two times (2x) the daily performance of the Dow Jones U.S. Semiconductors&nbsp;Index, lost 26% in the last five days.
ETFs with exposure to riskier indexes noted volatility during the period. ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>), which corresponds to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Semiconductors Index, gained 28% in the last five days.
The ETFs tracking broader indexes like the S&amp;P 500 and NASDAQ saw relatively lesser value losses due to Big Tech stocks like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 stock market index, including Big Tech stocks, lost 3.5% in the last five days. Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the NASDAQ index, lost 5% in the last five days.
Photo via Shutterstock

Broad U.S. Equity ETFs

Specialty ETFs

FTXL

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks

In the wake of Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recent earnings announcement, exchange-traded funds (ETFs) associated with the company have shown diverse responses.
What Happened: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, after the earnings report, GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) saw a decrease of 3.41% in pre-market trading. Concurrently, T-Rex 2X Inverse NVIDIA Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NVDQ#BATS">NVDQ</a>) experienced a rise of 3.48%.
Other ETFs like ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Direxion Daily NVDA Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDU#NASDAQ">NVDU</a>) also witnessed a decline of 1.90% and 3.48% respectively. On the contrary, Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) saw an increase of 1.09% and 0.57% respectively.
The varied responses from NVDA ETFs came in the aftermath of Nvidia&#8217;s latest quarterly earnings report.
See Also: <a href="https://www.benzinga.com/markets/cannabis/24/08/40590258/gop-congress-member-nancy-mace-they-havent-done-anything-slams-dnc-cannabis-inaction-calls-out-r?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">GOP Congress Member Nancy Mace: &#8216;They Haven&#8217;t Done Anything,&#8217; Slams DNC Cannabis Inaction, Calls Out Republican Reluctance</a>
Why It Matters: Nvidia ETFs had shown mixed trading activity prior to the earnings announcement as well. The earnings report revealed that Nvidia had surpassed expectations for the <a href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal">second quarter driven</a> by strong data center revenue.
However, the Jensen Huang-led chip company&#8217;s gross margin had contracted from the first quarter, leading to a 3.6% drop in shares in after-hours trading. This could explain the varied responses among Nvidia ETFs following the earnings announcement.
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40592599/nvidia-stock-poised-for-major-298b-market-jolt-as-q2-earnings-loom-says-goldman-sachs-can-you-im?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nvidia Stock Poised For Major $298B Market Jolt As Q2 Earnings Loom, Says Goldman Sachs: &#8216;Can You Imagine&nbsp;If NVDA Beats Expectations?&#8217;</a></li>
</ul>
Image via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

NVDQ

NVDU

Nvidia ETFs Split In Pre-Market After Jensen Huang-Led Chip Giant Exceeds Q2 Expectations

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is set to report its highly anticipated earnings Wednesday, and the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40597015/will-nvidia-continue-to-deliver-investors-sweat-over-hyped-up-expectations-and-pote">stakes couldn't be higher.</a>
As the undisputed leader in the AI revolution, Nvidia&#8217;s results will be a critical indicator for the broader market, particularly for those invested in semiconductor and technology sectors.
This highly followed market event offers both risk and opportunity. For traders seeking to capitalize on Nvidia's earnings without the direct exposure to single-stock volatility, ETFs with substantial Nvidia holdings present an appealing alternative. 
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40596306/market-eyes-305b-shift-in-nvidias-market-cap-as-options-pricing-forecasts-9-8-post-">Market Eyes $305B Shift In Nvidia&#8217;s Market Cap As Options Pricing Forecasts 9.8% Post-Earnings Move: &#8216;A Lot Of That Insurance Is FOMO&#8217;</a>
<h3 class="wp-block-heading">Nvidia Earnings Expectations: A High Bar Set</h3>
Wall Street has set an ambitious target for Nvidia this quarter, with revenue expected to hit $28.74 billion — a staggering 17% increase from the previous quarter and an eye-popping 156% jump from the same quarter last year. 
Earnings per share (EPS) are forecasted to rise to 65 cents, up from 56 cents in the prior quarter and 21 cents in the same period last year.
Goldman Sachs&#8217; semiconductor analyst, Toshiya Hari, is bullish on Nvidia&#8217;s prospects, predicting the company will surpass these already lofty expectations. 
&#8220;We believe customer demand across the large Cloud Service Providers and enterprises is strong, and Nvidia&#8217;s robust competitive position in AI/accelerated computing remains intact,&#8221; Hari stated in a note published this month. 
The driving force behind this optimism? Data Center revenues and strong operating leverage. Hari highlights three key areas: robust demand for the H100 GPUs, the launch of volume shipments of the H200, and the ramp-up of Nvidia&#8217;s Ethernet-based networking product, Spectrum-X. These factors could fuel a significant earnings beat, potentially leading to upward revisions in EPS.
Shares of the AI tech giant are up 159% year to date, after surging by 239% in 2023. 
<h3 class="wp-block-heading">Historical Volatility: A Look At Past Nvidia Earnings</h3>
Nvidia&#8217;s stock has a history of sharp rallies post-earnings, with an average one-day boost of 9% over the past eight quarters and 7.1% over the last four.
A Goldman Sachs analysis identified the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) as having the highest average post-earnings move (3.4%) following Nvidia's past eight earnings releases. 
It was followed by the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) at 2.9% and the ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) at 2.4%.
<h3 class="wp-block-heading">Top 10 ETFs With Nvidia Exposure</h3>
For traders looking to gain exposure to Nvidia's potential earnings-driven rally, here are 10 ETFs with the largest holdings in the stock:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Nvidia Weight %</th>
<th>YTD Performance (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>)</td>
<td>30.69%</td>
<td>136%</td>
</tr>
<tr>
<td>Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>)</td>
<td>29.54%</td>
<td>19.2%</td>
</tr>
<tr>
<td>Simplify Volt RoboCar Disruption (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>)</td>
<td>22.83%</td>
<td>12.7%</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF </td>
<td>21.95%</td>
<td>41.3%</td>
</tr>
<tr>
<td>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>21.29%</td>
<td>16.7%</td>
</tr>
<tr>
<td>Grizzle Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DARP#NYSE">DARP</a>)</td>
<td>20.32%</td>
<td>13.9%</td>
</tr>
<tr>
<td>Franklin Focused Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FFOG#NYSE">FFOG</a>)</td>
<td>18.07%</td>
<td>26.4%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (IXN)</td>
<td>17.55%</td>
<td>21.6%</td>
</tr>
<tr>
<td>iShares ESG Advanced MSCI USA ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USXF#NYSE">USXF</a>)</td>
<td>16.05%</td>
<td>22.4%</td>
</tr>
<tr>
<td>SoFi Select 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SFY#NYSE">SFY</a>)</td>
<td>15.96%</td>
<td>20.5%</td>
</tr>
</tbody>
</table>
</figure>
Now Read:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40600345/big-tech-is-your-flight-to-safety-and-your-flight-to-growth-says-expert-ahead-of-nv">&#8216;Big Tech Is Your Flight To Safety And Your Flight To Growth,&#8217; Says Expert Ahead Of Nvidia Earnings</a></li>
</ul>

ARKK

DARP

Franklin Templeton ETF Trust Franklin Focused Growth ETF

FFOG

USXF

10 ETFs Poised For Wild Swings Following Nvidia Earnings

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) continues to lead the global foundry market, holding a 62% share in the second quarter of 2024. Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>), which has a 3% market share, follows suit.
Taiwan Semiconductor&#8217;s $877 billion market cap reflects a strong demand for artificial intelligence (AI) and a robust semiconductor ecosystem.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/08/40554768/taiwan-semiconductor-ramps-up-overseas-investments-with-1-95b-in-subsidies-eyes-long-term-growth" rel="noreferrer noopener">Taiwan Semiconductor Ramps Up Overseas Investments with $1.95B in Subsidies, Eyes Long-Term Growth</a>
It also looks to double its production capacity for Chip on Wafer on Substrate (CoWoS) technology by 2024.
Additionally, Taiwan Semiconductor intends to raise prices for its 3-nanometer and 5-nanometer process products by up to 8%, a strategic move that could further solidify its market position and enhance profitability.
Taiwan Semiconductor clocked a <a target="_blank" href="https://www.benzinga.com/markets/asia/24/07/39832197/apple-nvidia-supplier-tsmc-reports-strong-q2-results-amid-booming-demand-for-ai-chips-guides-q3-abov" rel="noreferrer noopener">second-quarter topline</a> growth of 40.1% year-over-year, quashing the analyst consensus backed by strong demand for 3-nanometer and 5-nm technologies.
Samsung Electronics also makes strategic advancements, particularly in AI and high-performance computing (HPC) applications. The company is focusing on advancing its 2nm process to meet future technologies&#8217; high-performance, low-power, and high-bandwidth requirements.
Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) announced plans to introduce 1.4nm ultra-fine processes by 2027. It clocked a <a target="_blank" href="https://www.benzinga.com/news/24/08/40528681/intel-board-member-lip-bu-tan-resigns-amid-chipmakers-struggle-with-cost-cuts" rel="noreferrer noopener">second-quarter topline</a> growth of 0.9% year-on-year, trailing the analyst estimate. It shared plans to downsize its workforce by over 15%.
Taiwan Semiconductor stock gained 80% in the last 12 months. Intel plunged over 40%.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27065117/newplot-1-8.png" alt="" class="wp-image-515567" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27065117/newplot-1-8.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/08/27065117/newplot-1-8-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Investors can gain exposure to the semiconductor sector through SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>) and ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>).
Price Action:&nbsp;TSM stock traded lower by 0.81% at $167.70 premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Jack Hong via Shutterstock

Taiwan Semiconductor Leads Foundry Market, Samsung and Intel Ramp Up Advanced Process Efforts: Report

Chip stocks-linked exchange-traded funds (ETFs) witnessed a substantial decline during <a href="https://www.benzinga.com/markets/equities/24/08/40156506/nvidia-plunges-nearly-10-to-sub-100-level-leading-other-semiconductor-stocks-lower-in-premarket-">Monday&#8217;s pre-market trading.</a>
What Happened: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) plummeted by 17.93%, while GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) dropped by 18.49%. ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) was trading lower by 16.72%.
Similarly, VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) also recorded losses, falling by 6.55% and 6.25% respectively.
Why It Matters: This significant drop in semiconductor ETFs is part of a larger global market &#8220;bloodbath.&#8221; On Friday, the U.S. <a href="https://www.benzinga.com/markets/asia/24/08/40156460/bloodbath-in-asia-and-europe-japans-index-crashes-13-gold-near-record-highs-global-markets-update-wh">stock markets closed</a> lower due to a disappointing jobs report, which sparked recession fears and led to a shift in investor sentiment. 
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40152445/trumps-bold-plan-to-use-bitcoin-to-wipe-out-35t-us-debt-questioned-by-economist-justin-wol?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s Bold Plan To Use Bitcoin To &#8216;Wipe Out&#8217; $35T US Debt Questioned By Economist Justin Wolfers: &#8216;That&#8217;s Not How Crypto Works&#8217;</a>
On Monday, Asian markets opened with Japan&#8217;s TOPIX index dropping over 6%, <a href="https://www.benzinga.com/markets/equities/24/08/40151907/global-sell-off-shows-no-sign-of-stopping-japanese-stocks-fall-sharply-nikkei-drops-over-5-dow-f">triggering circuit breakers </a>and halting trading. This was part of a broader impact felt across the Asia-Pacific region. The U.S. market also<a href="https://www.benzinga.com/markets/asia/24/08/40152994/as-global-markets-roil-strategist-soothes-nerves-some-normal-action-under-the-surface-as-tech-got-wa"> showed a negative performance</a> for the third straight session, with tech being the worst performer. 
The development also coincides with Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)<a href="https://www.benzinga.com/news/24/08/40152477/nvidia-upcoming-chip-launch-faces-delay-due-to-design-flaws-setback-expected-to-impact-meta-microsof"> facing delays in the production</a> of its upcoming AI chips due to design issues. This setback is expected to impact major clients including Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), and Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
Read Next: 
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40152252/bitcoin-ethereum-dogecoin-mirror-stock-market-rout-major-coins-crash-as-recession-war-fear?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Mirror Stock Market Rout — Major Coins Crash As Recession, War Fears Grip Investors: Analyst Says Aug, Sept &#8216;Worst Months&#8217; for King Crypto But Oct Raises Hopes</a></li>
</ul>
Photo via Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

Pre-Market Outlook

NVDL, SOXL And Other Chip ETFs Suffer Major Blow In Premarket Amid Global Market 'Bloodbath'

In a recent development, chip ETFs have experienced a significant upswing as a result of President Biden&#8217;s decision to exempt some allies from the new rule governing chip exports to China.
This movement also comes on the heels of&nbsp;Advanced Micro Devices, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) <a href="https://www.benzinga.com/news/earnings/24/07/40060832/amd-skyrockets-over-9-lifting-along-with-ai-rival-nvidia-whats-going-on">posting its second-quarter</a> results which exceeded expectations and guided the current quarter's revenue above consensus. 
What Happened: According to <a href="https://pro.benzinga.com">Benzinga Pro</a>, on Wednesday, the GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>), which has 100% exposure to AMD&#8217;s peer Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) saw an 11.78% increase, trading at $52.65, up from Tuesday&#8217;s close of $47.10. 
The Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) also experienced a significant boost, trading 10.71% higher at $41.23, compared to its previous close at $37.24.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/40038854/why-bitcoin-etf-gbtc-is-down-a-whopping-10-today?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Why Bitcoin ETF GBTC Is Down A Whopping 11% Today</a>
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) followed suit, with an 8.73% increase, trading at $110.98, a significant rise from Tuesday&#8217;s close at $102.07. The VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) saw a 4.20% increase, trading at $239.10, up from $229.47. Lastly, the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose by 3.69%, trading at $228.73, up from $220.58 on Tuesday.
Why It Matters: The Biden administration announced <a href="https://www.benzinga.com/24/07/40061267/asml-shares-surge-over-7-as-team-biden-plans-to-exempt-allies-from-new-rule-on-foreign-chip-equipmen">the new rule </a>on foreign chip equipment exports to China which will enhance U.S. authority to halt exports of semiconductor manufacturing equipment from certain foreign countries to Chinese chipmakers. However, shipments from key allies such as Japan, the Netherlands, and South Korea will be exempted, thereby limiting the rule's impact.
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</ul>
Picture by blickpixel on Pixabay and Karolina Grabowska on Pexels and Osman Bugra Nuvasil on Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

NVDL, SOXL, And Other Chip-Stock Tracking ETFs Are Trading Higher In Premarket Today: Here's Why

Investors, including Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), have invested about $27 million in the networking software startup Arrcus Inc. in the latest round of funding to enhance its platform for managing <a target="_blank" href="https://www.benzinga.com/topic/data" rel="noreferrer noopener">data traffic more efficiently</a>.
The investment round saw participation from Saudi Aramco's venture arm Prosperity7 Ventures, Hitachi Ventures, and General Catalyst, among others, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-18/nvidia-backs-networking-software-startup-arrcus-s-latest-round?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> reports.
The San Jose-based company, which counts SoftBank Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Target Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TGT#NYSE">TGT</a>) among its 50 clients, intends to use the funds to expand globally and enhance its technology.
With the rise of artificial intelligence, the demand for robust networks connecting enterprises, data centers, and users has increased.
Arrcus's software optimizes data flow to meet this demand.
CEO Shekar Ayyar emphasized the growing importance of networks in the evolution of AI architecture, stating that companies are seeking smarter ways to utilize processors and hardware efficiently.
Nvidia, which has become the posterchild of the AI revolution, is not only catering to the rising demand for its advanced chips but has also become a venture capital investor in <a target="_blank" href="https://www.benzinga.com/news/24/03/37584039/nvidias-secret-weapon-is-not-just-chips-but-investing-1-5b-in-ais-rising-stars-report-unveils-ceo-je" rel="noreferrer noopener">firms leveraging the technology</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39822184/google-and-microsoft-provide-nvidia-chip-access-to-chinese-firms-despite-u-s-restrictions-report" rel="noreferrer noopener">Google And Microsoft Provide Nvidia Chip Access To Chinese Firms Despite U.S. Restrictions: Report</a>
The chip major has invested in about three dozen startups, with investments in other companies rising sharply from $300 million a year ago to $1.55 billion at end-January.
For example, Nvidia-backed AI startup&nbsp;Cohere is eyeing a $5 billion valuation, marking a substantial leap from its <a target="_blank" href="https://www.benzinga.com/news/24/03/37867088/nvidia-backed-ai-startup-cohere-targets-5b-valuation-in-new-funding-round" rel="noreferrer noopener">previous valuation of $2.2 billion.</a>
Cohere's competitors include OpenAI, which has Microsoft&nbsp;Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) as a backer and anticipates $1 billion in revenue for 2024.
Arrcus collaborates with major industry players such as Broadcom Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) alongside Nvidia.
The startup employs approximately 150 people, with a significant portion based in Bangalore. Earlier in 2023, Arrcus raised $50 million, later expanding its Series D funding round.
NVIDIA stock has gained more than 153% in the last 12 months. Investors can gain exposure to the stock via&nbsp;T-Rex 2X Long NVIDIA Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NVDD#BATS">NVDD</a>) and ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>).
Price Action: NVDA shares are trading higher by 2.41% at $120.83 at the last check on Thursday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

NVDD

SFTBY

Nvidia Invests In AI Network Optimizer Arrcus

Chip stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) are trading lower Wednesday as the <a target="_blank" href="https://www.benzinga.com/government/24/07/39810709/whats-going-on-with-alibaba-and-peer-chinese-stocks-on-wednesday" rel="noreferrer noopener">U.S. intensified semiconductor sanctions</a> against China, followed by Presidential candidate Donald Trump&#8217;s attack against crucial contract chipmaker Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
The Biden administration is contemplating using the Foreign Direct Product Rule (FDPR), which allows it to impose controls on foreign-made products that incorporate even minimal amounts of American technology, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-17/us-considers-tougher-trade-rules-against-companies-in-chip-crackdown-on-china?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
The U.S. has presented this possibility to officials in Tokyo and The Hague.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/07/39790359/whats-going-on-with-nvidia-stock-on-tuesday" rel="noreferrer noopener">Nvidia&#8217;s Growth Soars Despite French Investigation and Investor Skepticism</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/17053457/newplot-36.png" alt="" class="wp-image-440237" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/17053457/newplot-36.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/17053457/newplot-36-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Additionally, the U.S. is considering further sanctions on specific Chinese chip companies.
The U.S. semiconductor companies have significant exposure to China. Prior reports indicated Nvidia could sell $12 billion of AI chips in China this year despite <a target="_blank" href="https://www.benzinga.com/government/24/07/39646273/is-nvidia-defying-us-export-controls-whats-going-on" rel="noreferrer noopener">U.S. export controls</a>.
Meanwhile, former President Donald Trump has triggered jitters in the semiconductor sector <a target="_blank" href="https://www.benzinga.com/news/24/07/39807774/trump-says-taiwan-should-pay-us-for-defense-ex-presidents-remark-triggers-fall-in-tsmc-shares" rel="noreferrer noopener">with the latest remark</a>.
The key Nvidia supplier, Taiwan Semiconductor, is trading lower on Wednesday after Trump said that the contract chipmaker should compensate the U.S. for its defense.
Trump suggested this during a Bloomberg Businessweek interview on June 25, which was published on Tuesday.
The broader chip sector is trading lower Wednesday, including Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), STMicroelectronics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STM#NASDAQ">STM</a>), ON Semiconductor Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>), GlobalFoundries Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>), United Microelectronics Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UMC#NASDAQ">UMC</a>), Skyworks Solutions Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>).
Investors can gain exposure to the semiconductor sector through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
Price Actions: NVDA shares traded lower by 4.02% at $121.28 at the last check on Wednesday.
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Photo by Tatiana Popova and rawf8 via Shuttterstock

MCHP

SWKS

What's Going On With Nvidia, AMD And More Semiconductor Stocks Wednesday?

Key artificial intelligence chip stocks Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) stocks continue to ride the artificial intelligence wave Monday.
Wall Street expects leading <a target="_blank" href="https://www.benzinga.com/news/24/07/39768027/whats-going-on-with-taiwan-semi-stock-on-monday" rel="noreferrer noopener">AI contract chipmaker</a> Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) to likely report a 30% rise in second-quarter profit on Thursday. The Street expects Taiwan Semiconductor to clock a net profit of $7.25 billion for the quarter ending June 30.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39753749/nvidia-highlights-lucrative-returns-for-cloud-providers-using-nvidia-gpus" rel="noreferrer noopener">Nvidia Highlights Lucrative Returns For Cloud Providers Using Nvidia GPUs</a>
Tech investor James Anderson <a href="https://www.benzinga.com/markets/equities/24/07/39765205/nvidia-could-be-worth-nearly-50-trillion-in-a-decade-says-early-tesla-amazon-investor-nearly-2x-" target="_blank" rel="noreferrer noopener">predicted that Nvidia</a> could achieve a market capitalization nearing $50 trillion within the next decade due to its crucial role in AI chip demand. 
He noted Nvidia could reach earnings of $1,350 per share and free cash flow of $1,000 per share with sustained 60% annual growth in data center revenue.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/15091509/newplot-30.png" alt="" class="wp-image-436143" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/15091509/newplot-30.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/15091509/newplot-30-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia stock gained over 178% in the last 12 months. AMD gained over 53% during the period.
Investors can gain exposure to the semiconductor sector through ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>) and Invesco PHLX Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>).
<h2 class="wp-block-heading">NVIDIA Stock Prediction For 2024</h2>
Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.
Shares of NVIDIA have an average 1-year price target of $827.85, representing an expected upside of 536.49%.
Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on NVIDIA, while 47 analysts have bullish ratings. The street high price target from Cantor Fitzgerald is $1400.0, while the street low from Goldman Sachs is $135.0.
Price Actions: NVDA shares traded higher by 0.76% at $130.22 at the last check on Monday. AMD is up 0.19% at $181.96.
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Photo via Shutterstock

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