BofA says U.S.-concentrated chipmaker stocks to see boost from made-in-U.S. push

Amid media reports this morning that suggest the Trump administration is considering a plan to institute a 1:1 ratio of U.S. and foreign made chips, with tariff penalties for offending suppliers, BofA said PC, phone, and server hardware vendors might face more of the market volatility since they are the ones that need to align with the potential new guidelines. Meanwhile, the firm expects the “usual US-concentrated manufacturers,” such as Intel (INTC), GlobalFoundries (GFS), Texas Instruments (TXN) and Micron (MU), to “see some stock boost,” though it thinks semicap equipment stocks “could be the real beneficiaries over time.” The large fabless compute vendors such as Nvidia (NVDA), Broadcom (AVGO), AMD (AMD) and Marvell (MRVL) are likely to increase their orders to TSMC’s (TSM) U.S.-based manufacturing, added BofA.