3 Chip-Related Stocks to Buy After Export Restriction Fear Sparks Sell-Off
Semiconductor stocks sold off recently after Bloomberg came out with a report that the U.S. was looking to enact tighter export restrictions to keep China from gaining access to advanced chip technology. The report noted that the restrictions would extend to foreign Semiconductor equipment manufacturers that use U.S. technology, such as ASML and Tokyo Electron, as well.
Investor worries only intensified as former President Donald Trump, who is seeking to return to office, said that Taiwan should pay for its own military defense. Taiwan manufactures over 90% of the world's advanced chips, according to the Semiconductor Industry Association, and China considers the autonomously governed island as its territory.
While these reports add risk to the space, they often tend to be noise more than anything else. With the boom in artificial intelligence (AI) chips, companies in the space have a long runway to grow without shipping advanced chips or equipment to China.
Source Fool.com
