The tech rout on Wall Street appears to be alive and kicking, with semiconductor stocks particularly coming in for severe punishment. The tech wreck seen in the premarket on Monday is being led by artificial intelligence stalwart Nvidia Corp. (NASDAQ:NVDA).
Nvidia is falling along with the rest as the tide ebbs and the underperformance of Nvidia is due to the fact that it has outperformed the high-flying tech stocks amid the market upturn seen since 2023. The Jensen Huang-led company also hit with a negative headline regarding the rumored delay in its next-gen Blackwell accelerators. The information reported that Blackwell B200 AI chips will be delayed due to a design flaw found late in the production process and may not ship until early 2025, potentially impacting customers such as Microsoft Corp. (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META) and Google parent Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG).
In an emailed reply to Benzinga, Nvidia said, "Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in 2H. Beyond that, we don't comment on rumors."
The semiconductor industry is also stymied by weak results reported by some of the chipmakers, notable of them being Intel Corp. (NASDAQ:INTC).
According to Benzinga Pro data, in premarket trading:
- Nvidia fell 9.07% to $97.54.
- Advanced Micro Devices, Inc. (NASDAQ:AMD) slipped 5.52% to $125.19.
- Arm Holdings plc (NASDAQ:ARM) plunged 10% to $102.10 as its owner SoftBank Group Corp.'s (OTC:SFTBY) Japan-listed shares plunged 18.66% amid a sharp plunge in the Japanese market, which swooned on fears concerning a global recession and the strength of the yen. Japan's stock market is heavily weighted with export stocks and a stronger yen is negative for their fundamentals.
- Dutch chip equipment maker ASML Holding N.V. (NASDAQ:ASML) fell 4% to $777.
- Intel moved down 4.66% to $20.48.
- iShares Semiconductor ETF (NASDAQ:SOXX) fell 6.14% to $194.12.
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Image via Nvidia Blog