Tuesday’s 9.5% decline in Nvidia’s stock price led to the company’s market valuation being wiped out by roughly $300 billion. Intel dropped by about 8%, Marvell by 8.2%, and Broadcom by roughly 6%. Snapdragon declined about 7%, and AMD fell 7.8%.
For the first time since March 2020, the semiconductor equity index tracked by the VanEck Semiconductor ETF (SMH) saw a 7.5% decline. Tuesday’s weak market performance followed the ISM manufacturing index’s August data, which came in lower than expected.
This might increase the likelihood that the Federal Reserve would lower interest rates while also fuelling concerns about the health of the economy.
With expectations that the development in artificial intelligence will force businesses to purchase more semiconductors, chip stocks have increased over the past year.
Source (CNBC)
