China's Key Materials Ban: U.S. AI Chip Stocks Could Lose $3.4 Billion in GDP Impact
China’s export ban on chips hit U.S. markets on December 3, 2024. The ban threatens $3.4 billion in potential GDP losses. The impact of U.S. semiconductors is shown most clearly in the stock prices of three major chip makers. This comes amid rising tensions over AI chip stocks between the world’s largest economies. Source: usgs.gov Also Read: UAE’s Central Bank Approves First AED-Backed Stablecoin How China’s Export Ban on Gallium and Germanium Affects U.S. Semiconductor Stocks and the AI Industry Source: Watcher Guru 1. Intel (INTC) Performance Intel traded at $21.00 when the ban started. The stock dropped 0.5% on December 3. Intel saw the biggest monthly loss of major chip makers at -20.57%. This decline started before the ban. Markets may have expected the ban, or other factors could have driven the drop. 2. Advanced Micro Devices (AMD) Market Response AMD’s stock price fell heavily before the ban. It dropped from $140 to about $130 near December 3. The compan...