Semiconductor Stocks Face Pressure as NVIDIA Leads Sector Decline

Nvidia Leads Semiconductor Stocks Lower Following Q2 Earnings: What Investors Need To Know - NVIDIA (NASDAQ:NVDA)

"Hopper demand remains strong, and the anticipation for Blackwell is incredible," Nvidia CEO Jensen Huang says. Several semicondutor stocks are volatile in Wednesday's after-hours session after NVIDIA Corp NVDA reported financial results for the second quarter. Here's a look at some of the biggest movers in the chip space on Wednesday: Advanced Micro Devices Inc AMD. Closed down 2.75% at $146.36. Micron Technology Inc MU. Closed down 3.07% at $94.86. Super Micro Computer Inc SMCI. Closed down 19.02% at $443.49. Taiwan Semiconductor Manufacturing Company Ltd TSM. Closed down 0.79% at $169.20 Intel Corp INTC. Closed down 2.29% at $19.61. Marvell Technology Inc MRVL. Closed down 1.82% at $68.44. What Happened With NVDA: After the market closed on Wednesday, Nvidia reported second-quarter revenue of $30.04 billion, beating the consensus estimate of $28.684 billion. The leading AI chipmaker reported adjusted earnings of 68 cents per share, beating analyst estimates of 64 cents per share, per Benzinga Pro. "Hopper demand remains strong, and the anticipation for Blackwell is incredible. NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI," said Jensen Huang, founder and CEO of Nvidia. Nvidia expects third-quarter revenue of $32.5 billion, plus or minus 2%, versus estimates of $31.77 billion. The company anticipates gross margins of 74.4% and adjusted gross margin of 75% in the third quarter. The company's board also approved an additional $50 billion in share repurchases. The additional buyback approval does not have an expiration date. Don't Miss: Nvidia Q2 Earnings, Guidance Top Street View As AI Fuels Record Data Center Revenue: Gross Margin Falls Quarter-Over-Quarter, Stock Falls Why It Matters: Nvidia shares are sliding despite beating expectations, likely due to the remarkable run in shares over the past two years on the back of surging demand for the company's AI chips. Several other players in the semiconductor space have benefitted from the AI boom as well and often trade in sympathy with Nvidia. Nvidia's conference call, which is set to kick off at 5 p.m. E.T. could spark more volatility across the space after hours. There are still some chip names that are yet to report results for the period. Marvell Technology is due to report earnings results after the market close on Thursday and Micron recently scheduled its quarterly results for next month. Nvidia shares were down 5.56% after hours, trading at $118.62 at the time of publication Wednesday, per Benzinga Pro. Read Next: AI Chip Stocks Rally Faces New Headwinds - Why Are Nvidia, Taiwan Semiconductor, Broadcom And Marvell Tech Stocks Sliding? Photo: Shutterstock. Market News and Data brought to you by Benzinga APIs

Advanced Micro Devices Shares Are Trading Lower Today: What You Need To Know - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

he semiconductor sector is on edge as NVIDIA's highly anticipated earnings report. Shares of Advanced Micro Devices, Inc. AMD are under pressure today as the semiconductor sector faces increased volatility amid several key developments. What To know: A major factor contributing to the sector's slide is the fallout from a recent short report on Super Micro Computer Inc. SMCI by Hindenburg Research. The report accused SMCI of accounting manipulation, sibling self-dealing and sanctions evasion, casting a shadow over the company's rapid growth in the AI sector. SMCI shares plunged by over 23% and the company announced a delay in filing its Form 10-K for the fiscal year ending June 30 2024. What Else: Adding to the sector's uncertainty is the anticipated earnings report from NVIDIA Corporation NVDA, set to be released after the market closes on August 28 2024. NVIDIA, a dominant force in AI and semiconductor technology, has seen its stock surge by an astounding 160% year-to-date. Analysts have been bullish on NVIDIA, with consensus estimates for second-quarter 2024 revenue and net income both receiving upward revisions in recent days. This optimism reflects the broader expectations for continued growth in AI and semiconductor demand. AMD Price Action: Advanced Micro Devices shares were down by 2.29% at $147.05 according to Benzinga Pro. See Also: US Stocks, Chipmakers Fall Ahead Of Nvidia Earnings, Berkshire Hits $1 Trillion, Super Micro Computer Sinks: What's Driving Markets Wednesday? Photo via Shutterstock. Market News and Data brought to you by Benzinga APIs

AI Chip Stocks Rally Faces New Headwinds - Why Is Nvidia, Taiwan Semiconductor, Broadcom, and Marvell Sliding? - NVIDIA (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Super Micro Computer (NASDAQ:SMCI), Lam Research (NASDAQ:LRCX)

Nvidia, Broadcom, and TSMC stocks down as AI demand faces scrutiny amid market sell-off. Semiconductor and chip stocks, including Nvidia Corp NVDA, Taiwan Semiconductor Manufacturing Co TSM, Broadcom Inc AVGO, Marvell Technology Inc MRVL, Lam Research Corp LRCX are trading lower Wednesday ahead of Nvidia's fiscal second-quarter earnings, reflecting the interconnected semiconductor ecosystem. The sell-off also follows key Nvidia partner Super Micro Computer, Inc SMCI getting called out by Hindenburg for its accounting malpractices, related party transactions, and more, leading to a delayed annual report filing. Super Micro stock is down close to 27%. Nvidia's second-quarter fiscal 2025 revenue guidance of $27.44 billion-$28.56 billion is a big jump from its second-quarter fiscal 2024 revenue of $13.51 billion, which bears testimony to the continued artificial intelligence tailwind for the stock. The stock is up over 172% in the last 12 months. JPMorgan's Harlan Sur expects Broadcom to be worthy of a $150 billion-plus AI semiconductor opportunity over the next five years after it bagged ChatGPT parent OpenAI and a major AI ASIC customer. The analyst backed his projections with Broadcom's plans to ramp Alphabet Inc GOOG GOOGL Google's next-gen 3nm TPU AI processor and Meta Platforms Inc META being an essential partner of Broadcom. Broadcom stock is up 87% in the last 12 months. Sur had earlier called out Broadcom's 80% market share in the $5 billion-$7 billion datacenter/AI Ethernet switching and routing chipset market, which places it ahead of Nvidia and Marvell Technology. Taiwan Semiconductor is a key Nvidia supplier and also leads the global foundry market with a 62% share as of the second quarter of 2024. It guided third-quarter revenue of $22.4 billion -- $23.3 billion, up from the $17.3 billion reported a year ago, backed by robust demand for AI chied in hyper-performance computing and smartphones. The contract chipmaker looks to boost prices of its 3-nanometer and 5-nanometer process products to maintain its margin goals. Taiwan Semiconductor stock is up over 80% in the last 12 months. AI server company Super Micro is another beneficiary of the AI wave. It expects first-quarter revenue of $6 billion -- $7 billion, compared to the $2.12 billion revenue it reported a year ago. The stock has increased over 61% in the last 12 months, backed by AI server demand from Big Tech giants. Marvell Technology expects second-quarter revenue of $1.19 billion -- $1.31 billion versus the $1.34 billion it reported a year ago, driven by ramping custom AI silicon for data centers, enterprise networking, and carrier infrastructure. The stock has risen over 24% in the last 12 months. Lam Research expects first-quarter revenue of $3.75 billion -- $4.35 billion, up from the $3.48 billion it reported a year ago. Thanks to the demand for AI-powered chips, the company is looking to tap the wafer fab equipment spending. The stock has risen over 20% in the last 12 months. Price Actions: TSM stock is down 2.07% at $167.01 at the last check on Wednesday. AVGO is down 2.66% at $157.06, MRVL is down 2.55% at $67.94 and LRCX is down 2.49% at $801.29. Image via Nvidia Blog Market News and Data brought to you by Benzinga APIs