According to the charts, semiconductor stocks underperformed the broader equity market yesterday. While the S&P 500 index (US SPX 500 mini on FXOpen) fell by around 2.2%, the drop was far steeper across the chip sector:

→ The bullish semiconductor ETF (SOXL) declined by 15%;
→ Nvidia (NVDA) shares fell by 6.9%;
→ Advanced Micro Devices (AMD) dropped by 7.3%.

In other words, chipmaker stocks dragged down the broader market, raising concerns ahead of the upcoming earnings season.

Why Are Chip Stocks Falling?

The decline stems from corporate assessments of how the escalating global trade war and new tariffs could impact future performance.

According to media reports:
→ AMD expects to face tariffs of up to $800 million on exports to China;
→ For Nvidia, similar levies could exceed $5 billion.

Technical Analysis – Nvidia (NVDA)

The price continues to fluctuate within a downward channel, previously identified in our analysis:

The lower boundary of the channel is acting as support, helping the price close near its opening level yesterday (forming a Doji candle on the daily chart).

Technical Analysis – AMD

A similar picture is emerging on the AMD chart:

The $96 level now appears to be a key resistance zone.

In Summary

All eyes are on today’s earnings report from chipmaker TSMC (TSM), which could significantly influence the currently bearish sentiment in the sector.

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