Nvidia, Super Micro, Arm Tumble 2% In Premarket, Most Chip Peers Deep In Red: What's Dragging Down Semiconductor Stocks?

Author: Shanthi Rexaline | September 06, 2024 06:25am

Nvidia Corp.‘s (NASDAQ:NVDA) recovery could prove short-lived as the stock was trading sharply lower in premarket trading on Friday.

The weakness could in part be due to the disappointing guidance issued by fellow chipmaker Broadcom Corp. (NASDAQ:BRCM). The company’s third-quarter earnings and revenue exceeded the consensus and it even raised it 2024 artificial intelligence revenue forecast from $11 billion to $12 billion. The fourth-quarter revenue guidance of $14 billion was, however, shy of estimates of some analysts.

This dragged the stock down by about 9% in premarket trading. As has been the case with Nvidia, investors’ hyped expectations may have been the reason for the negative sentiment.

See Also: Best Semiconductor Stocks

Semiconductor companies are mostly growth stocks, considered risky bets. A flight to safety ahead of the U.S. payrolls report could also serve as a drag.

According to Benzinga Pro data, in premarket trading:

• Nvidia fell 1.89% to $105.18.
• Arm Holdings plc (NASDAQ:ARM) slumped 2.41% to $120.12. 
• Advanced Micro Devices, Inc. (NASDAQ:AMD) lost 1.01% to $138.03.
• Super Micro Computer, Inc. (NASDAQ:SMCI) plunged 2.99% to $402.20.
• Marvell Technology, Inc. (NASDAQ:MRVL) moved down 2.39% to $68.22.
• QUALCOMM Incorporated (NASDAQ:QCOM) declined 0.99% to $162.08.
• Texas Instruments Incorporated (NASDAQ:TXN) lost 0.77% to $200.
• Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) slipped 0.77% to $162.44.
• iShares Semiconductor ETF (NASDAQ:SOXX) retreated 2.01% to $208.76.

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