Nvidia co-founder and CEO Jensen Huang demonstrated the new Blackwell GPU chip at the Nvidia GPU Technology Conference in San Jose, California on March 18, 2024.
David Paul Morris/Bloomberg via Getty Images
Semiconductor stocks lead gains NVIDIATuesday’s decline came amid a broader market decline. The S&P 500 fell more than 1%.
NVIDIA fell nearly 8%, Intel 8% discount, Marvel down 7% and Broadcom It fell about 6%. AMD and Qualcomm down 6%. The SMH index, which tracks semiconductor stocks, fell 6%, its biggest one-day drop in a month.
On Tuesday, the August data released by the ISM manufacturing index was lower than consensus market expectations, raising concerns about the strength of the economy, but may also increase the possibility of the Federal Reserve cutting interest rates.
Chip stocks have been rising over the past year on optimism that the artificial intelligence boom will require companies to buy more semiconductors and memory to meet the growing computing needs of artificial intelligence applications.
The industry is led by Nvidia, whose shares are still up nearly 129% as of 2024 and dominates the AI data center chip market.
Other chip companies want investors to recognize their artificial intelligence products and growth potential. Intel and AMD also sell artificial intelligence chips, although demand for them is less than Nvidia’s products. Broadcom is committed to Google’s TPU chip, Qualcomm is promoting its chip as the most suitable chip for running AI on Android phones.
Last week, Nvidia reported a profit of $30 billion for the quarter ended in July, which was higher than Wall Street’s already raised expectations. Revenue from the company’s data center business, which includes artificial intelligence processors, rose 154% annually, in part because a handful of cloud and networking giants are buying billions of dollars of Nvidia chips every quarter.
Nvidia said it expects sales to grow 80% this quarter.
But some investors interpreted Nvidia’s forecast last week as a slowdown in growth, briefly hurting chipmakers that supply Nvidia with memory and other parts.
Intel announced New laptop processors launched Tuesday Artificial intelligence programs can be run on the device itself, rather than relying on servers in the cloud. Broadcom, which partners with major companies to develop customized artificial intelligence chips, reported third-quarter earnings on Thursday.
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