Tariffs, Inflation, and AI: How Semiconductors Are Being Reshaped

Higher inflation and interest rates are reshaping the semiconductor and hardware industry. Tariffs are now directly feeding into consumer prices, while AI hardware is adding to inflation. This mix affects which stocks feel pressure and which have pricing power.

NVIDIA (NVDA) is a prime example of how AI hardware feeds into inflation. The company operates two main segments: Compute & Networking generates $275.4b in revenue, and Graphics contributes roughly $27.6b. Its GPUs and data center platforms are directly tied to AI servers and accelerator demand.

NVIDIA's market cap is around $5,505.0b, making it one of the largest listed companies globally. The company earns most of its revenue from data centers and has a growing ecosystem of cloud providers, sovereign AI projects, and financing partners lining up to secure access to its GPUs. This gives NVIDIA clear pricing power but also raises questions about how much customers can spend if financing costs stay elevated.

Another stock exposed to these trends is Lam Research (LRCX). The company supplies wafer fabrication tools for chip makers, including those used in AI servers. It generates around $23.2b in revenue from manufacturing and servicing equipment. Lam Research has a market cap of roughly $398.6b and is closely tied to global semiconductor capex plans.

Marvell Technology (MRVL) also fits the screener's focus on US-listed hardware tied to AI servers and connectivity. The company designs data infrastructure chips that help move and process data across AI data centers, cloud networks, and storage systems. Its portfolio ranges from custom accelerators and processors to high-speed optical interconnects.