- Shares of chip suppliers are under pressure following the Trump administration's restrictions on doing business with Huawei.
- Google has suspended business activity with the Chinese giant. Other Huawei suppliers, including Qualcomm, Broadcomm and Intel, reportedly told employees they will not sell to the Chinese firm until further notice.
- U.S. chip suppliers are losing a big customer as Huawei purchases $20 billion of semiconductors each year, according to an Evercore estimate.
The VanEck Vectors Semiconductor ETF (SMH) was trading at $102.23 per share on Monday afternoon, down $3.20 (-3.04%). Year-to-date, SMH has gained 4.52%, versus a 7.08% rise in the benchmark S&P 500 index during the same period. SMH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #16 of 81 ETFs in the Technology Equities ETFs category.
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