Nvidia, Chip Stocks Drops Into Correction
Nvidia stock is down more than 10% from high peaks
TSMC may boost sentiment with first profit increase in a year
A gauge of global chip stocks and AI bellwether Nvidia Corp. have fallen together into a technical correction, showing moderation in the global equity market’s most conspicuous driver over the past year and a half.
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Nvidia, Chip Stocks Drops Into Correction
Nvidia stock is down more than 10% from high peaks, via Bloomberg#NVIDIA #semiconductor #chips pic.twitter.com/efftK1On8Y— The_Journalbiz (@the_journalbiz) April 18, 2024
Bloomberg chart
The Philadelphia Semiconductor Index and Nvidia dropped more than 3% each Wednesday, pushing them down more than 10% from record-high levels reached in March.
In addition to concerns of the rallies becoming overheated, the sector has been hit by concerns over pushed back Federal Reserve interest rate cuts and China’s weak economy.
Dutch chipmaking equipment firm ASML Holding NV led Wednesday’s decline in the so-called SOX gauge after it posted disappointing orders for the latest quarter. Top customers are holding off as they work through stockpiles, though China’s buying of less-sophisticated machines has held up amid US restrictions on its access to high-tech equipment.
Taiwan Semiconductor Manufacturing Co. may help boost sentiment after it reported its first profit increase in a year on Thursday, helped by strong AI demand. The primary outsourced maker of chips for Nvidia as well as Apple Inc. reported a 9% increase in net income to NT$225.5 billion ($7 billion) for the first three months of the year, beating the consensus estimate.
