The proposed tariff on imported semiconductors has put a sharp focus on domestic chipmakers, who could see significant benefits from the policy shift amid a booming AI market.
NEW YORK – Major U.S. semiconductor firms, including Advanced Micro Devices (AMD), Micron Technology, and Broadcom, are drawing significant investor attention following President Trump’s announcement on August 6 of a proposed 100% tariff on imported chips.
The move, aimed at bolstering domestic manufacturing, could create a substantial tailwind for U.S.-based companies while posing a major challenge to foreign producers like Taiwan Semiconductor Manufacturing (TSM).
The announcement comes as the tech sector continues its impressive run, largely fueled by explosive demand for AI components and infrastructure. The semiconductor industry sits at the heart of this boom, making any policy affecting it highly impactful. While NVIDIA (NASDAQ:NVDA) often dominates the conversation, several other key players are positioned to navigate the changing landscape.
Here’s a look at three U.S. chipmakers in the spotlight:
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) recently reported strong second-quarter revenue of $7.69 billion, a 31.70% year-over-year increase. In an earnings call, CEO Dr. Lisa Su highlighted “robust demand across its computer and AI product portfolio,” driven by record sales of server and PC processors.
Further bolstering its outlook, AMD and NVIDIA have reportedly secured agreements with the Trump administration to continue exporting certain made-for-China chips in exchange for a 15% payment to the U.S. government. Analysts estimate this business line could generate up to $3 billion per quarter for AMD. This strategic positioning is reflected in strong institutional ownership of 71.34% and low short interest.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) is another domestic powerhouse demonstrating strong momentum. The company reported record fiscal third-quarter revenue of $9.3 billion and earnings per share (EPS) of $1.91, handily beating analyst estimates. According to CEO Sanjay Mehrotra, data center revenue more than doubled year-over-year.
In the wake of the tariff news, Micron provided an updated and optimistic forecast for its fourth quarter, projecting revenue of $11.2 billion and an EPS of $2.85. The company is also expanding its U.S. operations, with construction underway on the nation’s largest chip fabrication plant, expected to be operational in 2026. Institutional investors hold a significant 80.84% of the company’s shares.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO), which recently became the seventh-largest publicly traded U.S. company, is also well-positioned. The company operates in both semiconductor solutions and infrastructure software, making it a direct play on the chip industry.
Broadcom reported second-quarter revenue of $15 billion, a 20.2% year-over-year increase, and returned $7 billion to shareholders through dividends and buybacks. Looking ahead, the company guided for third-quarter revenue of $15.8 billion, with its AI semiconductor business alone expected to contribute $5.1 billion. The firm boasts high institutional ownership at 76.43% and very low short interest of just 1.01%, indicating strong investor confidence.
