Politico's report on Trump's semiconductor tariffs has once again focused market attention on the semiconductor sector. Nvidia's recent earnings call warning still resonates: "For now, the booming development of artificial intelligence continues to expand. However, memory shortages could persist until 2028."
Amidst tightening supply and stronger demand, the proposed semiconductor tariffs will pose a problem for corporate profit margins and will deal a further blow to the artificial intelligence sector, at least from a structural and supply perspective. Nvidia's major customers (large technology companies) will face increased scrutiny at this critical juncture.
As for memory manufacturers and semiconductor companies, while they will also face challenges, their greater bargaining power allows them to mitigate these challenges by passing on costs to downstream customers.
