Monolithic Power Systems Inc MPWR shares are trading lower by 2.9% to $508 Thursday afternoon. Semiconductor and chip stocks have dropped amid tech sector weakness, fueled by rate hike concerns post-U.S. jobs data. China's iPhone crackdown and Huawei's 5G Kirin 9000s chip-powered smartphone have added pressure to several sector stocks.

A ban on iPhones in Chinese government sectors could be seen as a sign of worsening trade relations between China and the United States. Such tensions can create economic uncertainty, which may lead to reduced consumer and business spending.

As a result, MPS's sales and growth prospects in China could be negatively impacted.

What You Need To Know

China's move against the U.S. to broaden its ban on iPhones in sensitive departments encompassing government-backed agencies and state companies signaled increasing difficulties for Apple Inc in its largest foreign market and global production hub. The ban comes on the heels of Apple's latest iPhone model launch.

This move comes amid Beijing's efforts to reduce reliance on American technology, further fueled by the U.S. sanctions on China over semiconductor technology and efforts to reduce supply chain dependence on China...Read More

According to data from Benzinga Pro, MPWR has a 52-week high of $595.98 and a 52-week low of $301.69.