An article is about how Taiwan Semiconductor and Nvidia stock prices are affected by China's strict export controls on important materials called germanium and gallium. These materials are needed for making semiconductors, which are used in computers, phones, and other tech gadgets. China makes 98% of the world's gallium and 60% of germanium. Because of this, the prices for these materials have gone up a lot, causing problems for companies like Taiwan Semiconductor and Nvidia who use them. This is a big issue because there is already a shortage of these materials and this makes it even harder for these companies to make the things we need. Read from source...

The article 'What's Going On With Taiwan Semiconductor And Nvidia Stock Tuesday?' by Anusuya Lahiri on Benzinga seems to be well-researched and provides valuable insights into the impact of China's export controls on germanium and gallium on global semiconductor supply chains. However, the article does not delve into the long-term effects of this development on the semiconductor industry and overlooks the potential for innovation and new technological solutions that could emerge from these supply chain challenges. Additionally, the article's tone seems to lean towards a negative perspective, suggesting that these challenges could have significant adverse effects on companies like Taiwan Semiconductor and Nvidia without acknowledging their resilience and adaptability in the face of such obstacles.

1. Taiwan Semiconductor (TSM): The article highlights that TSM has been affected by China's export controls on germanium and gallium, impacting global supply chains. The cost spike due to these controls might affect TSM's margin goals. However, TSM is exercising its pricing strategy to accomplish its goals. As a result, its stock price may face volatility. Investors considering TSM should assess the potential risks and opportunities associated with the company's exposure to these supply chain disruptions and pricing strategies.

2. Nvidia (NVDA): Like TSM, Nvidia is also impacted by the export controls China has introduced. Being one of the key customers of TSM, Nvidia might face a cost spike and subsequent price increase to protect its margins. Investors looking at Nvidia need to evaluate the company's reliance on materials from China and the potential impact on their bottom line.

Recommendations:

- The article suggests that the current situation might create opportunities for other chip manufacturers who are not reliant on Chinese materials. Investors could consider exploring these alternatives for diversification.

- Since the restrictions impact germanium and gallium shipments, companies using these materials for military and communications applications could be another avenue for investment.

- Given the current market dynamics, investors should closely follow regulatory changes, their implications, and how companies adapt to them to make informed investment decisions.

- Investors should also evaluate the companies' overall exposure to geopolitical risks and their resilience to such disruptions.

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