By Adam Clark
Nvidia and other chip stocks were falling on Thursday. The semiconductor sector is suffering again amid concerns about a prolonged conflict in Iran.
Nvidia shares were down 2.7% at $170.88 in premarket trading. The move was broadly in line with the wider market, as futures tied to the benchmark S&P 500 index were down 1.2% following a speech by President Donald Trump which failed to relieve concerns about a prolonged closure of the Strait of Hormuz.
Among other chip makers, Broadcom was falling 2.9% and Advanced Micro Devices was dropping 3.1%.
While chip makers are yet to see much impact from disruption in the Middle East, eyes are on the supply chain in Asia. Much of the region is heavily dependent on oil and gas supplies that are normally shipped through the Strait of Hormuz, which is currently effectively blocked.
American depositary receipts of Taiwan Semiconductor Manufacturing (TSMC), the world's largest chip manufacturer, were down 4% in premarket trading. TSMC is responsible for around 9% of Taiwan's overall electricity consumption, with gas being the single largest source of the self-ruled island's power.
Taiwanese authorities have previously said the island has sufficient liquefied natural gas reserves through May.
Another concern is helium, which is crucial for semiconductor wafer fabrication. Disruptions in the Strait of Hormuz and a force majeure at Qatar's Ras Laffan facility have knocked roughly a third of the world's helium supply offline.
However, UBS analyst Geoff Haire argues existing storage should offset any concerns about helium in the short term.
"If the Middle East conflict persists for less than two months, the sector's impact is likely to remain minimal. Additionally, the robust balance sheets of leading semiconductor companies, coupled with their strategic significance, are expected to likely position the sector as a supply chain priority," Haire wrote in a research note Thursday.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
April 02, 2026 08:39 ET (12:39 GMT)
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