Tariffs Haven’t Dented the Chip Sector

Tariffs Haven’t Dented the Chip Sector 

The global semiconductor market is projected to grow 11.2% in 2025 to $700.9bn, driven by strong gains in logic and memory chips, Seeking Alpha detailed. Artificial intelligence (AI) chip investment continues to surge. The Americas and Asia Pacific are set to lead with 18.0% and 9.8% growth, respectively. World Semiconductor Trade Statistics forecasts growth of 8.5% in 2026, pushing the market to $760.7bn.

TSMC is Unfazed…

Speaking at the annual shareholders meeting, Taiwan Semiconductor Manufacturing Co [TSM] CEO C.C. Wei said US tariffs have had limited direct impact on the company, Reuters reported: “That’s because tariffs are imposed on importers, not exporters. TSMC is an exporter.” Wei noted no major shifts in customer behavior despite trade uncertainty; he remains confident in strong AI-driven growth.

…But China Tech Firms Are Feeling the Bite

New US restrictions on chip design software are set to hit Chinese tech firms hard, with Xiaomi [XIACY] being particularly vulnerable, the Financial Times reported. Xiaomi’s new 3nm XRING O1 chip — built by TSMC using tools made by US companies — may face supply disruptions. The world’s biggest computer maker Lenovo [LNVGY] and bitcoin miner BIT Mining [BTCM] also stand to be impacted.

Data Center Stock Crushes it in Q4 

Credo [CRDO] posted standout Q4 results, with revenue up 26% sequentially and 180% year-over-year, to $170m. 2025 revenue hit $437m, up 126%. Q4 non-GAAP net income was $65.3m with a 38.4% margin. CEO Bill Brennan noted growing traction with hyperscalers. For Q1 2026, the firm guided revenue of $185m–195m and gross margin of 64–66%. On Foresight, read OPTO’s recent deep dive into CRDO stock. 

xAI Launches $300m Share Sale

Amid a flurry of activity as Elon Musk scales back his role in the Trump administration to refocus on his business empire, xAI is launching a $300m tender offer. The round values the company at $113bn, the price tag agreed on when xAI purchased X in March. The deal allows staff to sell shares, the Financial Times noted, and is expected to be followed by a larger round for outside investors. 

OECD Slashes US Growth Forecast

With continued volatility from US President Donald Trump’s tariffs weighing on expectations, the OECD revised its growth outlook for the US down from 2.2% to 1.6% in 2025 and 1.5% in 2026. Beyond uncertainty surrounding economic policy, a slowdown of net immigration and a smaller federal workforce were cited as reasons behind the downgrade. The organization also lowered its global GDP growth projection to 2.9%, with the slowdown concentrated in North America. 

Will Nutanix Win the HCI Race? 

As hyperconverged infrastructure becomes the backbone of modern data centers, Nutanix [NTNX] is surging ahead by attracting defectors from Broadcom’s [AVGO] VMware. Meanwhile, Broadcom is seeing strong software revenue growth despite customer churn, and Cisco [CSCO] is betting big on AI and cyber security to stay competitive. OPTO examines the investment case for these cloud leaders as they jockey for dominance in a rapidly evolving tech landscape.