Semiconductor Stocks to PLUMMET! Is Your Portfolio Safe?!

Great Responsibility Terrible Economy?

Alright True Believers your friendly neighborhood Spider Man here with a web slinging market update! Seems like some serious wall crawling is needed to keep our portfolios from falling off the Empire State Building. KeyBanc is saying semiconductor stocks could take a nosedive if a recession hits. Apparently 'with great power comes great responsibility'... and also potential for a 30 40% downside risk! Ouch! That's like Aunt May finding out I skipped out on my shift at the Daily Bugle... again.

Trump's Tariffs: More Like TARIFF ying!

These 'reciprocal' tariffs courtesy of uh *that* guy are causing more trouble than Mysterio at a science fair! The iShares Semiconductor ETF (SOXX) is already down 7% since April 2nd. Even without my Spidey Sense I can tell that's not good. It's like when Doc Ock tries to parallel park... just a whole lot of metal getting crunched. They are making things really complicated for exports to China Nvidia and Advanced Micro Devices both expect to take sizable hits.

SOXX Appeal?

SOXX is looking a little less than appealing right now. I mean it is down 18% year to date. Still there's a glimmer of hope! This KeyBanc analyst John Vinh thinks things could swing up in the second half of the year if the tariff situation gets sorted out. Maybe we should all write a strongly worded letter? 'Dear Tariff Man please play nice. Sincerely Your Friendly Neighborhood Spider Man... and everyone else!'

Chip Off the Old Block(chain)!

Even though chips are exempt from tariffs all this trade uncertainty between the U.S. and China is still a real pain in the web shooters. Nvidia and Advanced Micro Devices are expecting some serious hits because of the curbs on exports to China. That's gotta sting more than when Sandman gets sand in my eye.

Inventory Implosion!

Vinh also slashed his revenue forecast for integrated circuits in 2025. Apparently everyone's got too many chips lying around like when I accidentally order five pizzas instead of one (don't judge web slinging makes you hungry!). He's hoping things will bounce back but these tariffs could drag things out. This Tariff trouble is making inventory like my spider suit supply when I have no money!

AI to the Rescue!

Okay so what's a web head to do? Vinh says to invest in stocks tied to generative AI like Nvidia and Broadcom. He's got an 'overweight' rating on both with price targets that could make your Spidey Sense tingle! He expects Nvidia to jump by more than 92% and Broadcom by more than 62%. Sounds like someone's gonna be able to afford some extra large pizzas! And by the looks of it the market agrees because both stocks are up today. Maybe this whole stock thing is easier than fighting the Sinister Six after all! Who am I kidding?