Market Musings 7/17/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Trump’s foreign policy comments exposed one of the biggest risks for AI: Taiwan.
So markets pulled back today with the S&P down over 1%, while the Tech-heavy NASDAQ tumbled almost 3%.
#AI led the declines with the #AI market leader Nvidia down -7%.
The concern stems from Trump signaling skepticism around defending Taiwan from China.
Taiwan is home to TSMC (Taiwan Semiconductor Manufacturing Company) and is the market leader in making advanced node semi chips. Companies like Nvidia are dependent on them to manufacture their #AI chips.
One of the biggest risks for the #AI buildout is Taiwan’s safety as there are no viable alternatives near-term to make these high end chips needed power all the new #AI features that everyone and their moms are building.
Now, we’re months ahead of an election and a lot can change. However, even if Biden wins, Taiwan’s safety will continue to be a major risk for #AI near-term.
It’s a issue we’ve been watching closely for Ursa’s portfolios and will continue to monitor.
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As of the publish date, Ursa portfolios may own NVDA. These securities may cease to be portfolio holdings at some point in the future. As of the publish date, Ursa portfolios do not own TSM with no plans to open any positions in the next 5 days. Any mention of these securities is for purely informational purposes only and NOT investment advice.
The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Tara Winstead.