The annual Computex computing trade show, held in Taipei, Taiwan on May 30, 2017, featured the Nvidia Corporation logo.
Global semiconductor stocks saw volatile trading on Tuesday following a significant decline in Nvidia shares during the previous session.
Early trading saw chip companies in Europe and Asia face a decline in their shares as investors reacted to Nvidia’s loss of more than $500 billion in market capitalization in three trading days. However, some stocks managed to recover, with shares of the U.S. chipmaker giant up about 5.5% as of 11:40 a.m. ET on Tuesday.
Swiss semiconductor company STMicroelectronics saw its shares close the day down more than 1.4%.
In Europe, Dutch chip equipment giant ASML initially posted losses but reversed its trend to close up 0.18% as Nvidia shares recovered. ASML plays a crucial role in the global semiconductor market, producing and selling extreme ultraviolet (EUV) lithography machines that chipmakers use to produce integrated circuits.
Soitec, on the other hand, fell 0.1%, while ASMI rose 0.6% after its early-session decline. The pan-European Stoxx600 index closed down about 0.3%.
Asian semiconductor stocks also had a volatile day. Taiwanese company MediaTek, known for its chips, saw its shares fall 1.8%, while South Korean company Samsung lost 0.3%.
Meanwhile, TSMC, the world’s largest chipmaker, and SK Hynix managed to avoid negative sentiment, gaining 0.5% and 0.9% respectively.
Nvidia stock rebounds
This came after a sharp decline in Nvidia shares that lasted three consecutive sessions, falling 13% from the all-time highs reached on Thursday.
On Monday, Nvidia fell 6.7%, marking its second-largest decline of the year. However, stocks began to recover in early trading on Tuesday.
Last week, Nvidia overtook Apple and Microsoft to become the most valuable U.S. company, with a market capitalization of more than $3.4 trillion. By the end of Monday, Nvidia had lost more than $540 billion in market value after hitting a record high during intraday trading on Thursday.
Nvidia said demand for its popular artificial intelligence graphics processing units (GPUs) remains high. Companies like Microsoft, Google, Amazon, Oracle and Half are investing billions of dollars in Nvidia chips to power their data centers and cloud services.
Later this year, Nvidia plans to start shipping its next-generation AI chips, known as Blackwell, which analysts say could kick off another phase of significant growth for the chipmaker and its partners.
