During the Nvidia GTC Conference at the SAP Center in San Jose, California, on March 18, 2024, Nvidia CEO Jensen Huang delivered a keynote address. Following a 7% plunge in stock due to geopolitical concerns sparked by comments from U. S. presidential candidate Donald Trump, Nvidia shares rebounded by approximately 3% during Thursday's trading. TSMC's announcement that demand for high-end AI chips remains high while supply remains constrained, as they manufacture these chips for Nvidia, contributed to the rise. TSMC Chairman C. C. Wei stated that supply would remain tight until at least 2025, despite reporting higher revenue and net income than expected by analysts, resulting in less than a 1% drop in stock. Geopolitical concerns, especially regarding the possibility of a Chinese invasion of Taiwan, led to significant declines in the semiconductor sector on Wednesday, impacting companies like AMD, Arm, Broadcom, and Qualcomm alongside Nvidia.

TSMC, however, expressed plans for overseas expansion to mitigate risks. Arm, AMD, Qualcomm, and Super Micro Computer faced ongoing struggles with their stocks, while Intel experienced a slight rise and Broadcom saw a 3% increase after reports of potential AI chip production for OpenAI. The Biden administration's consideration of additional trade restrictions on shipping chip manufacturing equipment to China and ASML's light sales guidance for the current quarter led to a 1% drop in ASML's stock. UBS analysts noted that investors are reallocating gains from strong semiconductor performers into other shares, though forthcoming commentary on AI chip returns on investment later in the year may push up the sector again. Nvidia stock has surged by over 150% in 2024. UBS analysts highlighted how some investors have rebalanced their semiconductor exposure in AI-linked platforms and profitless tech companies after significant outperformance in the first half of the year.