Cutting-Edge US Semiconductor Makers Crushed by One Thing after Another in 2022 after Mind-Boggling Bubble in 2020 & 2021 | Wolf Street

The US semiconductor giants that make the most advanced chips – and by extension semiconductor equipment makers – have been hounded by a multitude of problems this year, one layered on top of the other, and their stocks have gotten crushed, with Nvidia down 66% from the peak, AMD down 64%, Intel down 63% from its high in April 2021 and 66% from its all-time high in August 2000 (the glories of 22 years of buy-and-hold), Marvell Technologies down 57%, Micron down 48%, Applied Materials down 53%. They’ve issued earnings warnings, starting in the spring – with the most recent batch out last week when AMD, which makes processors for PCs, and Samsung, the world’s largest memory chipmaker, reported results that pointed at an even deeper-than-feared slowdown for advanced chips.

On top of all this, on Friday the White House, with bi-partisan support, announced new restrictions on these companies in their dealings with China. Friday was harsh for those stocks, and today so far is still harsh. For example, Nvidia, the largest US chipmaker by market cap, lost 12% over those two days through early afternoon today.

The new restrictions on these companies in their dealings with China, that the White House announced on Friday, came on top of a slew of other issues that had been boiling over all year.

Cutting-Edge US Semiconductor Makers Crushed by One Thing after Another in 2022 after Mind-Boggling Bubble in 2020 & 2021 | Wolf Street