Global Chip Rout Deepens: Nvidia Extends Losses as AI Funding Fears Mount
NVDA sits 19% above its 52-week low of $164.07.
Summary
A global selloff in chip stocks has intensified, dragging world equities to a one-month low. Asian semiconductor names led the decline, with South Korea's KOSPI plunging over 10% and triggering a circuit breaker, while SK Hynix and Samsung each fell more than 12%. Nvidia shares are down another 5% in premarket trading, adding to Monday's 5% drop after reports it is in talks to provide $250 billion in financing guarantees for OpenAI. Micron is also under pressure, with its stock falling again as the AI selloff strides to another level. The rout reflects mounting concerns over Chinese competition—including domestic DUV lithography progress and CXMT's $8.6 billion listing—and questions about the sustainability of AI infrastructure spending. This follows Nvidia's recent record results and $80 billion buyback authorization, but the macro backdrop is deteriorating with oil sliding and a potential Fed rate hike this week, challenging the AI growth narrative that has driven Nvidia to a $5.5 trillion valuation.
At the time of this announcement, NVDA was trading at $194.55 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.8T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.