Last week, shares of Nvidia fell, which caused trade in global chip stocks to be very unstable on Tuesday.
Early in the day, buyers in Europe and Asia sold off shares of chip companies after Nvidia’s market value dropped more than $500 billion in three days. It’s true that some stocks lost money, but as of Tuesday 11:40 a.m. ET, shares in the U.S. chipmaking giant had gained about 5.5%.
The stock of STMicroelectronics, a chip company based in Switzerland, went down more than 1.4% by the end of the day.
In Europe, ASML, a Dutch company that makes a lot of chip equipment, turned around earlier losses to end the day up 0.18 percent as Nvidia shares rose. ASML is a major player in the market for semiconductors around the world. Ultraviolet (EUV) tools are used by chipmakers to make integrated circuits, and the company makes and sells them.
While ASMI went up 0.6% after going down earlier in the session, Soitec went down 0.1%. The Stoxx 600 of stocks across Europe ended the day down about 0.3%.
Electronics stocks in Asia also went up and down on the same day. MediaTek, a chip company from Taiwan, saw its shares drop 1.8%, and Samsung, a south Korean company, saw its shares drop 0.3%.
The world’s biggest chipmaker, TSMC, and SK Hynix were able to avoid the bad mood and went up 0.5% and 0.9%, respectively.
Nvidia stock goes up again
It comes after Nvidia stock fell sharply for three days in a row, dropping 13% from its all-time high on Thursday.
Nvidia’s stock price fell 6.7% on Monday, which was the second-biggest drop of the year. However, shares began to rise again early Tuesday.
With a market value of over $3.4 trillion, the company surpassed Apple and Microsoft last week to become the most valuable in the United States. More than $540 billion had been taken away from Nvidia’s market value by the end of Monday.
Nvidia, on the other hand, says that there is still a lot of demand for its smart AI GPUs.
Its chips are being bought by Microsoft, Google, Amazon, Oracle, and Meta, among others, for billions of dollars to power their data centers and cloud services.
Some experts say that Nvidia and its partners could see another round of big growth after the company starts selling its next-generation AI chips later this year. These chips are called Blackwell.
