China’s Chip Crackdown: 2 Semiconductor Stocks To Dump, 1 Primed To Pop

Trade wars are always destructive. The current escalation in the chip wars will be no different. The Biden administration banned the use of equipment from China’s Huawei and ZTE over alleged national security concerns. Semiconductor stocks like Nvidia (NASDAQ:NVDA) were prohibited from selling their high-end chips to China.

Now Beijing is retaliating. It is barring the country’s telecommunications companies from using chips from American chipmakers. Although China’s domestic chips aren’t always as good as those made in the U.S., China’s largest telecoms China Mobile and China Telecom must now choose from a list of local suppliers.

Here are two semiconductor stocks that will see the business sharply cut by China’s tit-for-tat response. Also, one chip company should still benefit from the ban.

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