Core Viewpoint - Advanced Micro Devices (AMD) is experiencing significant stock valuation declines due to new export restrictions and rising manufacturing costs, leading to an anticipated $800 million write-down [1][2][3]. Group 1: Stock Performance - AMD's stock price fell by 7.4% in a single trading day, with an earlier drop of 10.5%, while the S&P 500 and Nasdaq Composite also declined by 2.3% and 3.1%, respectively [1]. Group 2: Export Restrictions - AMD announced that sales of its MI308X processor to China are effectively banned due to new U.S. policies requiring an export license, which is unlikely to be granted [2][3]. - The company expects to incur an $800 million loss on inventory due to these restrictions [2][3]. Group 3: Manufacturing Costs - TSMC, AMD's manufacturing partner, is set to increase prices on its 4nm chips by 30% due to high demand, which could lead to significantly higher costs for AMD [4]. Group 4: Macro Economic Factors - The Trump administration's decision to raise tariffs on Chinese goods to 245% from 145% has contributed to negative sentiment in the semiconductor sector, prompting investors to reduce exposure to chip stocks [5]. - Federal Reserve Chairman Jerome Powell indicated a cautious approach to interest rate cuts, citing potential economic growth weakening and inflation acceleration due to new tariffs [6].

Core Viewpoint - TSMC's stock has experienced significant sell-offs due to multiple bearish catalysts, including new export restrictions on Nvidia's processors and increased tariffs on China, leading to a year-to-date decline of 23% [2][3]. Group 1: Stock Performance - TSMC's share price closed down 3.6% on Wednesday, having dropped as much as 5.6% during the session, while the S&P 500 and Nasdaq Composite fell 2.2% and 3.1%, respectively [1]. - The stock's valuation has decreased in light of recent news and market conditions [2]. Group 2: Market and Regulatory Environment - Nvidia is now required to obtain an export license to sell its H20 processors to China, which may prevent sales of this product in the Chinese market [3]. - New restrictions on advanced AI semiconductors are expected to pressure overall demand for TSMC's manufacturing services [4]. - The U.S. has raised tariffs on China to 245%, and Federal Reserve Chairman Jerome Powell has indicated that interest rate cuts will be delayed until the inflationary impacts of these tariffs are better understood [5]. Group 3: Future Outlook - TSMC plans to increase prices on its 4nm chips by 30% due to surging demand, suggesting strong sales growth in the near term [6]. - The company is positioned to be a leading manufacturer of advanced chips for AI applications, but faces significant geopolitical risks due to U.S.-China tensions [6].