Broadcom Stock Is Plunging on China Export Restrictions. Analysts Think It Can Rally 45% From Here.

Stocks in the semiconductor industry cannot seem to catch a break from President Donald Trump’s tariff escalations, especially against China. In one of its latest moves, the Trump administration has now imposed restrictions on sales of certain artificial intelligence (AI) chips to China.

The fallout has been immediate, with shares of prominent semiconductor companies like Nvidia (NVDA), Advanced Micro Devices (AMD), and Micron (MU) declining considerably over the past week. Overall, the VanEck Semiconductor ETF (SMH), which is the largest exchange-traded fund (ETF) dedicated to the sector, is down 22.5% on a YTD basis, more than the Nasdaq Composite Index ($NASX) and S&P 500 Index’s ($SPX) falls of 17.8% and 12.3%, respectively.