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We recently published a list of Buy The Dip On These 10 Semiconductor Stocks Tumbling On China H20 Chip Sale Ban. In this article, we are going to take a look at where Newmont Corporation (NYSE:NEM) stands against other semiconductor stocks tumbling on China H20 chip sale ban.
Semiconductor manufacturers are at the forefront of the technological battle, especially in the context of China’s rapid tech developments. One would have thought President Trump would take it easy on the chipmakers owing to their critical position in the US and global tech infrastructure.
However, investors are now finding out that semi stocks aren’t immune to tariffs, with the latest round of tariffs expected to cost manufacturers around $1 billion. This cost will be incurred through lost sales, increased regulatory compliance, and elevated supply chain costs.
Uncertainty regarding the exact details of the tariffs continues to cause chaos in the market. Chip stocks are sliding as the leading chipmaker, led by Jensen Huang, finds its H20 chips banned from export to China. As the leading chipmaker tries to steer its way out of the crisis, other companies that rely on this giant for business are also trying to figure out what to do.
We decided to take a look at such stocks and see if they offer value. Remember that the H20 chips were made specifically for China, and a ban on selling them is only a temporary headwind, not something that threatens the company’s moat.
To come up with the list of semiconductor stocks worth buying on the China H20 chip sale ban, we considered stocks that are an integral part of the semiconductor supply chain and ranked them by hedge fund interest in their stocks.
A gold mine entry with a conveyor belt transporting minerals from the depths of a shaft.
Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Holders: 69
Newmont Corporation is primarily a gold exploration company, but also explores for critical materials like zinc, silver, and copper, among others. Its operations are spread across both North and South America.
The company’s stock is relatively stable because it only supplies critical material to the semiconductor industry, rather than having to adjust to the latest technological requirements like many other suppliers. NEM is therefore a stable alternative to the cyclical industry, providing a decent dividend yield of 1.83%.
The stock not only recovered well from the early April rout but is also closing in on its 52-week high thanks to a surge in gold prices. Due to multiple tailwinds likely to drive the stock price going forward, and limited exposure to the cyclical nature of the semiconductor industry, NEM is part of our list and the least likely to get negatively impacted by the US government’s export restrictions on H20 chips.