Geopolitical tensions in the Middle East are weighing on tech stocks and disrupting semiconductor supply chains.
• NVIDIA stock is under selling pressure. What’s driving NVDA stock lower?
Chip Stocks Slide As Conflict Escalates
Tech and semiconductor stocks declined Friday as the U.S.–Israel–Iran conflict entered its 28th day, amid rising energy prices that are fueling inflation concerns.
President Donald Trump extended Iran’s deadline by 10 days to April 6 while pausing potential strikes, but Iran rejected the U.S. proposal. Shares of NVIDIA Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), Marvell Technology, Inc (NASDAQ:MRVL), Arm Holdings Plc (NASDAQ:ARM), Intel Corp (NASDAQ:INTC), ON Semiconductor Corp (NASDAQ:ON) moved lower, with the PHLX Semiconductor Index down 0.30%.
The Nasdaq Composite also fell close to 1%, with Meta Platforms, Inc (NASDAQ:META), Amazon.com, Inc (NASDAQ:AMZN), Alphabet Inc (NASDAQ:GOOGL) trading lower.
Helium Shortage Disrupts Chip Supply Chain
The conflict has tightened global helium supply, a key input in chipmaking, pushing prices higher and disrupting production.
Companies are seeking alternative sources amid supply constraints and transport delays, Reuters reported on Thursday. Executives warned that prolonged shortages could lead to production cuts, affecting industries ranging from electronics to automobiles.
Cramer Flags Strong Nvidia Fundamentals
CNBC’s Jim Cramer said investors should focus on Nvidia’s fundamentals rather than geopolitical noise.
He noted the stock’s decline is not directly tied to the conflict and reflects its high trading liquidity. While higher rates and memory costs could pressure spending, he said strong demand for AI infrastructure continues to support Nvidia, adding that demand remains “incredibly strong.”
Price Actions: Nvidia shares were down 1.50% at $168.67, Broadcom shares were down 2.58% at $301.37, and Advanced Micro Devices shares were down 0.42% at $202.91 at the time of publication on Friday, according to Benzinga Pro data.
Image via Shutterstock
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