Nvidia Stock Plummets Amid Global Market Turmoil, Dragging Semiconductor Sector

Nvidia Plunges Nearly 10% To Sub-$100 Level, Leading Other Semiconductor Stocks Lower In Premarket: Why Their Chips Are Down? - NVIDIA (NASDAQ:NVDA), iShares Semiconductor ETF (NASDAQ:SOXX)

The tech rout on Wall Street appears to be alive and kicking, with semiconductor stocks particularly coming in for severe punishment. The tech wreck seen in the premarket on Monday is being led by artificial intelligence stalwart Nvidia Corp. NVDA. Nvidia is falling along with the rest as the tide ebbs and the underperformance of Nvidia is due to the fact that it has outperformed the high-flying tech stocks amid the market upturn seen since 2023. The Jensen Huang-led company also hit with a negative headline regarding the rumored delay in its next-gen Blackwell accelerators. The information reported that Blackwell B200 AI chips will be delayed due to a design flaw found late in the production process and may not ship until early 2025, potentially impacting customers such as Microsoft Corp. MSFT, Meta Platforms, Inc. META and Google parent Alphabet, Inc. GOOGL GOOG. In an emailed reply to Benzinga, Nvidia said, "Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in 2H. Beyond that, we don't comment on rumors." See Also: Best Semiconductor Stocks The semiconductor industry is also stymied by weak results reported by some of the chipmakers, notable of them being Intel Corp. INTC. According to Benzinga Pro data, in premarket trading: Nvidia fell 9.07% to $97.54. Advanced Micro Devices, Inc. AMD slipped 5.52% to $125.19. Arm Holdings plc ARM plunged 10% to $102.10 as its owner SoftBank Group Corp.'s SFTBY Japan-listed shares plunged 18.66% amid a sharp plunge in the Japanese market, which swooned on fears concerning a global recession and the strength of the yen. Japan's stock market is heavily weighted with export stocks and a stronger yen is negative for their fundamentals. Dutch chip equipment maker ASML Holding N.V. ASML fell 4% to $777. Intel moved down 4.66% to $20.48. iShares Semiconductor ETF SOXX fell 6.14% to $194.12. Read Next: What Investors Should Know About Yen Carry-Trade Unwinding That Is Sending Global Markets Into A Tailspin Image via Nvidia Blog Market News and Data brought to you by Benzinga APIs

Nvidia stock tumbles in tech slump amid questions over key chip

Nvidia shares tumbled in early Monday trading, extending the stock's one-month decline to around 23%, amid a major pullback in global tech stocks and reports of a delay in the delivery of its newly-designed AI chips known as Blackwell. Nvidia (NVDA) , which unveiled the Blackwell line of processors earlier this year, has said the flagship chips perform AI tasks at more than twice the speed of Nvidia's current Hopper chips, while using less energy and providing more bespoke flexibility. The tech giant said it would ramp production of the new processors over the second half of this year, while continuing to sell its H100 "Hopper" series to hyperscaler clients such as Microsoft (MSFT) , Meta Platforms (META) and Google parent Alphabet (GOOGL) . Hyperscalers are in fact are poised to spend around half a trillion dollars over the next two years building out their massive computing infrastructure, according to estimates from Barclays, as they leverage their massive datasets to enhance sales of everything from drive-through dining to the most complicated pharmaceutical testing. Tech-focused news outlet The Information, however, has reported the Nvidia had informed Microsoft, as well as an unnamed could service provider client, that a design flaw had been found in the Blackwell architecture that could delay its production ramp and delivery dates by around three months. Blackwell revenues key Analysts had expected Blackwell to generate revenues for Nvidia starting in the third quarter of this year, and find their way into global customer data centers by the final three months of the year. AI demand, as well as Nvidia's commanding market share, is predicted to drive the group's data center revenues to as high as $150 billion next year, powered largely by this year's Blackwell launch. Related: Top analyst puts Nvidia stock on key list after $500 million slump "With Blackwell said to be in full production in the second quarter, Nvidia is working to bring up its enterprise system and cloud partners for global availability later this year, with the ramp expected in Q3 and the company anticipating data centers should be operational by Q4," Benchmark analyst Cody Acree said in a note that followed Nvidia's second quarter earnings. "Demand for H200 and Blackwell is well ahead of supply, and the company expects demand may exceed supply well into next year," he added. Goldman Sachs analyst Toshiya Hari, who reiterated his 'conviction buy' rating and $135 price price target on Nvidia stock following the weekend report, said he remained confident that Blackwell revenues would remain a major part of the group's near-term growth story. "While (the report), if true, could drive some volatility in Nvidia's near-term fundamentals (i.e., muted growth in the October and/or January quarters followed by a steeper than previously expected ramp), we expect there to be little to no impact on CY2025 earnings and, most importantly, the company's long-term competitive position," he said. Nvidia, which reports third quarter earnings later this month, told investors in May that current-quarter revenues would rise to around $28 billion, a strongr-than-expected tally that assuaged investors concerns over a so-called air pocket created by the Blackwell launch. More AI Stocks: Some investors had worried that customers would cancel orders for the older H100 chips and wait for the newer system processors to ship later in the year. Related: Analyst puts Nvidia stock on watch; report points to new China chip Nvidia shares were marked 9.5% lower in premarket trading to indicate a Monday opening bell price of $97.08 each. That move, if it holds through the trading session, would, would drag the stock into bear market territory, which is typically defined at a 20% decline from a stock's recent peak. Nvidia shares closed at an all-time high of $135.58 each on June 18. Related: Veteran fund manager sees world of pain coming for stocks

Nvidia stock tumbles 10% in premarket amid global stock market rout By Investing.com

Nvidia stock (NASDAQ:NVDA) tumbled sharply in premarket trading Monday amid a wider stock market rout caused by concerns that the Federal Reserve may be moving too slowly to prop up a weakening U.S. economy. The chipmaker's shares fell roughly 10% in the market pre-open to $96.62.If these losses hold until the market opens, around $260 billion could be wiped from Nvidia's market cap, which was $2.64 trillion at Friday's close. This would also be the lowest price level for NVDA since May 2024. Nasdaq 100 futures lost around 4.4%, just days after the index entered a technical correction on Friday. S&P 500 contracts fell more than 2.8%, while Europe's Stoxx 600 benchmark dropped over 2.5%, marking its biggest three-day decline since June 2022. In Japan, the Topix and Nikkei indexes each declined more than 12%. Taiwan's benchmark experienced its worst day on record, and a broader measure of Asian shares saw its steepest drop in over four years. The selloff was driven by Friday's data indicating a weakening US jobs market, which triggered a key recession indicator. Concerns over high valuations from the AI boom and rising tensions in the Middle East further also contributed to the risk-averse sentiment. The global equity decline reflects concerns about the economic outlook, geopolitical risks, and skepticism over whether substantial investments in AI will meet the high expectations. Economists at Goldman Sachs Group Inc. raised the likelihood of a US recession in the next year to 25% from 15%, although they noted there are still reasons not to fear a severe downturn. Economists at JPMorgan shared even more pessimistic predictions, assigning the odds of an economic downturn at 50%.