US-China Semiconductor War: 10 Stocks to Watch

Published September 22, 2022 at 3:26 pm EDT Updated September 7, 2026 at 2:27 pm EDT

In this article, we will be taking a look at the US-China semiconductor war: 10 stocks to watch.

The United States and China have been on opposing ends in an ongoing tech cold war for several years now. This war is arguably far from its end, as trade tech tensions continue to rise between the two countries, to the dismay of the semiconductor industry caught in the fray. With such an impending threat to the industry, companies on both sides of the tech cold war have been looking for ways to control the damage done.

Many semiconductor companies that have traditionally been doing well on the market are being impacted by the US-China semiconductor war. Notable names include Micron Technology, Inc. (NASDAQ:MU), Intel Corporation (NASDAQ:INTC), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), among many more, as the article below will show. To help strengthen the position of American semiconductor companies, the Biden administration has taken steps to support local chipmakers. This August, the government signed the CHIPS and Science Act, which is aiming to strengthen the American semiconductor industry.

The act is expected to get American semiconductor companies back on their feet, since US-made chip production fell to 12% last year, according to Bloomberg. American Commerce Secretary Gina Raimondo has also moved to deploy over $52 billion for research and development, alongside manufacturing and workforce development, which is expected to further strengthen the semiconductor industry. On the topic of the new federal funding for the industry, Raimondo commented that the funds are expected to multiply as companies use government subsidies to attract private-sector money. She hopes to bring in an additional $200 billion to $400 billion through this project. The totality of the funds amassed to aid the American semiconductor sector is expected to last until 2026.

According to Reuters, further development on the semiconductor war front includes the Biden administration’s imposition of broadened restrictions on US shipments to China, especially targeting those holding semiconductors used for artificial intelligence and chipmaking tools. Several American semiconductor companies have already been instructed to halt their shipments to China, with NVIDIA Corporation (NASDAQ:NVDA) being one of the impacted companies. It has also been mentioned that the new regulations, to go fully into effect in October at the earliest, would include additional actions against China as well. American chip-makers are also expected to be disproportionately impacted as they will begin to face greater and stricter restrictions in the semiconductor space. Primarily, however, the new rules and restrictions are expected to impact companies that are trying to challenge the dominance of other companies like NVIDIA Corporation (NASDAQ:NVDA) in the AI chips sector.

US-China Semiconductor War: 10 Stocks to Watch

Photo by Yogesh Phuyal on Unsplash

Our Methodology

These stocks are likely to be impacted by the rivalry in the semiconductor industry, between the US and China, in either a positive or a negative manner. We have mentioned analyst ratings and price targets for all the stocks listed, alongside other fundamentals such as their latest earnings results, projected EPS growth, past dividend growth history, and more.

US-China Semiconductor War: Stocks to Watch

10. Hua Hong Semiconductor Limited (HKG:1347)

Number of Hedge Fund Holders: N/A

Hua Hong Semiconductor Limited (HKG:1347) is an investment holding company that manufactures and sells semiconductor products. The company offers embedded non-volatile memory, standard logic and mixed signal, radio frequency, power management integrated circuits, power discrete, and automotive solutions. It is based in Shanghai, China.

This August, Hua Hong Semiconductor Limited (HKG:1347) advanced by 5% despite rising US-China tensions. The company is expected to benefit from Chinese support for homegrown firms to bolster key semiconductor technology. As such, Sino-American tensions are positively impacting Hua Hong Semiconductor Limited (HKG:1347).

Hua Hong Semiconductor Limited (HKG:1347), like Micron Technology, Inc., Intel Corporation, and Taiwan Semiconductor Manufacturing Company Limited, is a renowned semiconductor company. In light of the US-China semiconductor war, the stock is likely to be significantly impacted.

9. Semiconductor Manufacturing Int’l (NYSE:SMI)

Number of Hedge Fund Holders: N/A

Semiconductor Manufacturing Int’l (NYSE:SMI) is China’s largest chipmaker based on market value. The company is based in Shanghai, China. It focuses on computer-aided design, manufacture, testing packaging, and trading of integrated circuits.

Semiconductor Manufacturing Int’l (NYSE:SMI) will have to face US export curbs this year, but the stock still continued rising in August. With traders banking on Chinese support for local semiconductor companies, the stock was able to gain 3.3% in Hong Kong this August.

8. MagnaChip Semiconductor Corporation (NYSE:MX)

Number of Hedge Fund Holders: 27

MagnaChip Semiconductor Corporation (NYSE:MX) is an information technology company working to design, manufacture, and supply analog and mixed-signal semiconductor platform solutions. The company also provides display solutions and timing controllers covering a range of flat panel displays used in mobile communications. It is based in Luxembourg City, Luxembourg.

This September, MagnaChip Semiconductor Corporation announced that it is expanding its stock repurchase program to $87.5 million, compared to the previous figure of $75 million. The company has already purchased $37.5 million worth of shares under this buyback program. The expansion makes a stronger statement about the company’s desire to return shareholder money as well. In light of rising tensions between the US and China in the semiconductor sector, MagnaChip Semiconductor Corporation’s (NYSE:MX) acquisition by Wise Road Capital was halted. The acquisition was valued at $1.4 billion, but was interrupted by the Committee on Foreign Investment in the United States (CFIUS)

Toronado Partners was the largest stakeholder in MagnaChip Semiconductor Corporation in the second quarter, holding 2.6 million shares worth over $37.3 million. In total, 27 hedge funds were long the stock, with a total stake value of $210 million.

Altron Capital Management, an investment management firm, mentioned MagnaChip Semiconductor Corporation in its fourth quarter 2021 investor letter. Here’s what the firm said:

“MagnaChip Semiconductor Corp. (NYSE:MX). While the previous buyout offer from Wise Road Capital did not go through as many expected, the company is still in talks with other potential buyers. Furthermore, the company announced a USD 75 million share buyback, which represents a significant percentage of the company’s shares. While we do not generally enter positions with the anticipation of a buyout, it is the case that a MagnaChip acquisition will be the most likely outcome.”

7. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 49

Dell Technologies Inc. (NYSE:DELL), another information technology company, is based in Round Rock, Texas. The company develops, manufactures, and sells IT solutions, products, and services across the globe.

On August 26, Analyst Amit Daryanani at Evercore ISI reiterated an Outperform rating on Dell Technologies Inc. shares. The analyst also placed a $58 price target on the stock.

This September, news broke that the Biden administration is planning to broaden curbs on US shipments of semiconductors to China. The move is coming in light of the rising rivalry between the two countries. The new restrictions are likely to impose license requirements on chip shipments to China, which is likely to impact Dell Technologies Inc.. The company is known for making data center servers containing the Nvidia A100 chip. As such, Dell Technologies Inc.’s (NYSE:DELL) product shipments are likely to become more restricted, in a negative turn of events for the company.

Dell Technologies Inc. was found among the 13F holdings of 49 hedge funds in the second quarter. Their total stake value was $1.1 billion. In comparison, 59 hedge funds were long the stock in the previous quarter, with a total stake value of $1.9 billion.

6. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 65

Intel Corporation designs, manufactures, and sells computer products and technologies across the globe. It provides platform products like central processing units and chipsets, among more. It is based in Santa Clara, California.

Ross Seymore at Deutsche Bank has a Hold rating on shares of Intel Corporation as of September 8. The analyst also placed a $35 price target on the stock.

This August, with the Taiwan visit led by the US House of Representatives’ Nancy Pelosi, tensions between the US and China substantially increased. Semiconductor stocks across the globe felt the impact of the move, with Intel Corporation, alongside several other American chip stocks, falling by more than 1% after the visit. This September however, news from the American Commerce Secretary, Gina Raimondo, revealed that about $52.7 billion might be deployed for research, development, and manufacturing in the semiconductor space. The additional funding is expected to aid companies like Intel Corporation significantly.

There were 65 hedge funds long Intel Corporation in the second quarter, with a total stake value of $2.5 billion. Of these funds, Generation Investment Management was the largest stakeholder in the company, holding 14.8 million shares worth $552.6 million.

Baron Funds, an asset management company, mentioned Intel Corporation in its second quarter 2022 investor letter. Here’s what they said:

“Then, there is the case of Intel Corporation (NASDAQ:INTC). A blue-chip tech champion with a market capitalization of over $500 billion in early 2000, the stock was trading at a P/E multiple of 42. It was a fast-growing company whose stock price and multiple declined more or less in line with its peers. However, unlike Google, Intel’s net income has grown from $7.3 billion in 1999 to $19.9 billion in 2021, a compounded annual growth rate of just 4.7%. Its growth from the dot com era has not proven to be durable, and Intel has yet to trade at the price it attained in 1999.”

Intel Corporation, like Micron Technology, Inc., Intel Corporation, and Taiwan Semiconductor Manufacturing Company Limited, is one of the most popular semiconductor stocks hedge funds are piling into this year.

5. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 69

Micron Technology, Inc. is an IT company working to design and manufacture memory and storage products for sale worldwide. The company is based in Boise, Idaho.

On September 13, Exane BNP Paribas’ analyst Karl Ackerman initiated coverage of Micron Technology, Inc. shares with an Outperform rating. The analyst also placed a $75 price target on the stock.

While Micron Technology, Inc. was among the stocks that fell by more than 1% after Nancy Pelosi’s visit to Taiwan, it is also one of the stocks that stand to gain during heightened tensions between the US and China. The company is set to benefit from new federal funding for chip-makers, sanctioned by the Biden administration.

Our hedge fund data shows 69 hedge funds long Micron Technology, Inc. in the second quarter, with a total stake value of $2.2 billion.

Meridian Funds, managed by ArrowMark Partners, mentioned Micron Technology, Inc. in its second quarter 2022 investor letter. Here’s what the firm said:

“Micron Technology, Inc. (NASDAQ:MU) is a leader in the production of DRAM and NAND memory. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”

4. QUALCOMM, Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 71

QUALCOMM, Incorporated (NASDAQ:QCOM) works to develop and commercialize foundational technologies for the wireless industry. The company is based in San Diego, California.

On July 29, Ingo Wermann at DZ Bank placed a Hold rating on QUALCOMM, Incorporated shares. The analyst also placed a $150 price target on the stock.

This July, global semiconductor industry sales grew to reach $49 billion, showcasing a 7.3% increase year over year. QUALCOMM, Incorporated was one of the major contributors to these rising sales in that month. Yet in August, with heightened tensions between the US and China over the semiconductor industry, many US stocks including QUALCOMM, Incorporated ended up falling by over 1%. It might be worthwhile to keep an eye on the company’s performance in the coming few months.

Out of 895 hedge funds, 71 funds were long QUALCOMM, Incorporated in the second quarter, compared to 73 funds in the previous quarter. Their total stake values were $2.8 billion and $3.6 billion respectively.

3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 72

Taiwan Semiconductor Manufacturing Company Limited is a semiconductors company that manufactures, packages, tests, and sells integrated circuits and other devices. The company operates in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

Daiwa’s Rick Hsu upgraded shares of Taiwan Semiconductor Manufacturing Company Limited to Buy from Outperform on September 14.

With Sino-American tensions in the semiconductor space rising ever higher, the US Commerce Department has continued issuing new export rules to block semiconductor shipments. One such export rule is targeting shipments to Huawei, due to which Taiwan Semiconductor Manufacturing Company Limited had to halt orders for Huawei’s HiSilicon unit this May. The company is being impacted by the US-China semiconductor war in multiple ways.

Taiwan Semiconductor Manufacturing Company Limited was found among the 13F holdings of 72 hedge funds in the second quarter. Their total stake value was $9.2 billion.

Mawer Investment Management, an asset management company, mentioned Taiwan Semiconductor Manufacturing Company Limited in its second quarter 2022 investor letter. Here’s what the firm said:

“More recently, as concerns about the economic outlook have grown, it is no longer just inflationary concerns and discount rate considerations that are impacting stock prices. Given an increasing probability of a recession, stock prices declined for holdings such as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), a business where end market demand could wane in a recessionary environment, and Ashtead Group, an economically sensitive construction equipment rental company. In both of these cases the pullback is due less from recent results, and more from uncertainty in the economic outlook. More cyclical businesses such as those within metals and mining also experienced sharp declines over the second quarter. Our general underweight exposure to such materials businesses, which we believe are typically less competitively advantaged, had a positive impact on relative performance.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 84

NVIDIA Corporation, an IT company, offers graphics, and compute and networking solutions. The company operates in the US, Taiwan, China, and internationally.

Vijay Rakesh, an analyst at Mizuho, holds a Buy rating on NVIDIA Corporation shares as of September 15. The analyst also placed a $205 price target on the stock.

The US Commerce Department’s newest rules and restrictions on semiconductor trades have instructed companies including NVIDIA Corporation to halt their shipments to China. The company needs to acquire a license to trade in China, especially if its shipments include artificial intelligence computing chips.

There were 84 hedge funds long NVIDIA Corporation in the second quarter, and 102 hedge funds long the stock in the previous quarter. Their total stake values were $3.3 billion and $6.4 billion respectively.

Baron Funds, an asset management firm, mentioned NVIDIA Corporation in its second quarter 2022 investor letter. Here’s what it said:

“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.

NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…” (Click here to see the full text)

1. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 87

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company. It operates through its Computing and Graphics, and Enterprise, Embedded, and Semi-Custom segments.

Mizuho’s Vijay Rakesh holds a Buy rating on Advanced Micro Devices, Inc. shares as well, as of September 15. The analyst holds a $125 price target on the stock.

Alongside NVIDIA Corporation, the Department of Commerce’s rules prohibiting US companies from shipping AI computing chips to China also impacts Advanced Micro Devices, Inc.. Advanced Micro Devices, Inc. was also instructed to halt all shipments of the targeted chips that were to be sent to China, presumably because of heightened US-China tensions.

Advanced Micro Devices, Inc. had 87 hedge funds long its stock in the second quarter, with a total stake value of $4.8 billion.

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