US semiconductor stocks rebounded on Tuesday, with major chipmakers opening higher after suffering heavy losses in the previous trading session. The Philadelphia Semiconductor Index (PHLX Semiconductor Index), which tracks major semiconductor companies , also moved higher.
Nvidia was among the companies that lost the most market value during the decline, according to Yahoo Finance. Other memory and storage companies also opened higher. Broadcom shares also edged higher as the wider semiconductor sector showed signs of recovery. The gains came as investors returned to chip stocks after the sharp decline in the previous session. The massive decline shows the scale of the recent sell-off in chip and memory stocks. Nvidia recorded the biggest loss in dollar terms among major semiconductor companies during this sell-off. Concerns about AI spending and debt among neocloud companies also weighed on semiconductor stocks. Neocloud companies provide specialised cloud computing services, including computing power needed for AI workloads .
Nvidia shares gained 2% in early trading on Tuesday, recovering some of the losses suffered by the chipmaker during the recent semiconductor sell-off. Memory chipmaker Micron Technology also recovered, with its shares rising 2% on Tuesday. This came after the stock dropped 7% during Monday’s trading session. The semiconductor sector has lost around $3.7 trillion in market value since October 6, according to calculations by Yahoo Finance. However, Intel suffered the steepest percentage decline among the major chipmakers, with its shares falling nearly 50%, according to Yahoo Finance.
Worries about their debt levels and the sustainability of AI-related investments added pressure on chip stocks in recent weeks, according to Yahoo Finance. South Korean memory chipmaker SK Hynix, along with Sandisk, Seagate Technology and Western Digital, recorded gains in early trading on Tuesday , according to Yahoo Finance.
