Nvidia Stocks Rebound After $500 Billion Losses: Global Semiconductor Market Reacts

Taipei, Taiwan – Semiconductor stocks experienced a rollercoaster trading day following a significant drop in Nvidia’s shares in the previous session. Investors witnessed chip firms in Europe and Asia reacting to Nvidia’s loss of more than $500 billion in market capitalization over three days. Despite the initial decline, there was a recovery as the U.S. chipmaking giant saw a rise of around 5.5% in its shares by midday on Tuesday.

Switzerland-based semiconductor company STMicroelectronics saw its shares close approximately 1.44% lower, reflecting the overall volatility in the market. In Europe, ASML, a Dutch chip equipment giant, managed to reverse earlier losses and ended the day with a 0.18% gain as Nvidia’s shares started to recover. ASML plays a crucial role in the global semiconductor market by manufacturing and selling extreme ultraviolet lithography (EUV) machines for chipmakers.

Across Asia, semiconductor stocks also experienced fluctuations. MediaTek, a Taiwanese chip firm, saw a 1.8% drop in its shares, while Samsung from South Korea slipped by 0.3%. However, TSMC, the world’s largest chipmaker, and SK Hynix were able to defy the negative trend by rising 0.5% and 0.9%, respectively.

The tumultuous day for semiconductor stocks followed a substantial decline in Nvidia’s shares over three consecutive sessions, resulting in a 13% decrease from its recent all-time highs. Despite this, Nvidia remains optimistic about the demand for its AI graphics processing units (GPUs). Major companies like Microsoft, Google, Amazon, Oracle, and Meta continue to invest billions in Nvidia’s chips to support their data centers and cloud services.

Looking ahead, Nvidia is preparing to release its next-generation AI chips, known as Blackwell, later this year. Analysts anticipate that this launch could spark significant growth for the chipmaker and its partners. With the tech industry constantly evolving, the dynamics of the semiconductor market are likely to continue influencing global economic trends and investor sentiments in the foreseeable future.