Qualcomm, chip equipment makers lead semis lower as sector deals with new export rules
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Qualcomm (NASDAQ:QCOM), Nvidia (NASDAQ:NVDA) and chip equipment makers led semiconductors lower on Monday as the industry deals with new export rules from the U.S. slated to curb the use of advanced chips in Chinese military applications. 
San Diego, California-based Qualcomm (QCOM) led decliners, falling more than 5% while Nvidia (NVDA) dropped by 3.7% and Advanced Micro Devices (AMD) shed 1%, respectively. Other players in the space, including Broadcom (AVGO), Microchip (MCHP), Micron (MU), ON Semiconductor (ON) and Monolithic Power Systems (MPWR) all closed the day in the red.
On Friday, Nvidia (NVDA) told Seeking Alpha that the new export controls from the U.S. government would not have a "material impact" on its business.
Intel (NASDAQ:INTC) shares fell 2% on the day. Earlier on Monday, Bank of America said on Monday that Intel (INTC) and Nvidia (NVDA) were two of the companies with the most to lose following the new rules.
Chip equipment companies also saw sharp declines, with Lam Research (NASDAQ:LRCX) leading the way, down 6.4%. Applied Materials (AMAT) fell more than 4%, and KLA Corp. (KLAC) gave up 4.7% on the day.
Among the chip equipment suppliers, Bank of America analyst Vivek Arya said that Lam Research (LRCX) would likely be the most impacted by the new rules. 
Foundry stocks also declined, led by a 3.3% decline for Taiwan Semiconductor (TSM) as Taiwan indicated its firms would follow the new U.S rules. GlobalFoundries (GFS) fell slightly more than almost 3% by the time of the closing bell.
On Friday, the Commerce Department published new rules that said companies seeking verification to sell to China would be faced with a "presumption of denial" standard if they produce DRAM chips below 18 nm, above 128 layers for NAND chips and below 14 nm for logic chips and would have to apply for a license. 
Bank of America recently reiterated its buy rating on Nvidia (NVDA) and several other chip makers, as it believes the group will continue to benefit from increased cloud computing spending.