Global semiconductor stocks experienced significant volatility on Tuesday as a result of Nvidia’s recent market performance. The American chip manufacturing giant lost over $500 billion in market capitalization over three trading days, leading to a red market for chip companies in Europe and Asia. However, Nvidia’s shares began to recover on Tuesday, with a 5% increase at 11:15 a.m. ET.
In Europe, Swiss-based company StMicroelectronics saw a 1.3% decrease in its shares, while ASML, a key player in the semiconductor market, experienced a slight decline of 0.1%. Meanwhile, ASMI and Soitec both saw their shares rise after earlier losses. The pan-European Stoxx 600 was 0.3% lower overall.
Asian semiconductor stocks also faced volatility, with Taiwanese company MediaTek seeing a 1.8% drop and Samsung from South Korea experiencing a 0.3% decline. TSMC and SK Hynix managed to rise above the negative trend, with increases of 0.5% and 0.9%, respectively.
Nvidia’s recent decline follows a 13% drop in its shares over three sessions, culminating in a 6.7% decrease on Monday. Despite these setbacks, Nvidia remains confident in the demand for its AI-enabled GPUs, with major tech companies like Microsoft, Google, Amazon, Oracle, and Goal continuing to purchase their chips for data centers and cloud services. Additionally, Nvidia is set to launch its next-generation AI chips, Blackwell, later this year, potentially sparking another growth cycle for the company and its partners.
Overall, Nvidia’s recent market performance has had a significant impact on the semiconductor industry, leading to uncertainty and volatility among global chip companies. However, with Nvidia’s shares showing signs of recovery and continued demand for its products, the industry remains optimistic about future growth opportunities.
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https://www.cnbc.com/amp/2024/06/25/nvidia-nvda-stock-rout-leaves-global-chip-shares-volatile.html