The dramatic overnight decline in Nvidia’s share price in the United States was followed by a decline in global semiconductor and related company prices on Wednesday.
Chipmaker Nvidia had a more than 9% decline in normal trading in the United States, which sent semiconductor stocks plunging amid a Wall Street sell-off.
Tuesday’s economic report renewed concerns about the state of the US economy. Following news from Bloomberg that the business had gotten a subpoena from the Department of Justice as part of an antitrust probe, Nvidia shares fell 2% further in post-market trade on Tuesday.
On Tuesday, Nvidia’s market capitalization dropped by around $279 billion, the worst one-day decline in the history of American stocks. The record was previously held by Facebook’s parent company Meta, which had a $232 billion value drop in a single day in February 2022.
The South Korean companies SK Hynix, a manufacturer of memory chips, and Samsung Electronics, a conglomerate, are part of the Nvidia value chain.
Shares of Samsung fell 3.45% at the closing, while SK Hynix—a company that supplies Nvidia with high speed memory chips—saw an 8% decline.
Advantest, a producer of semiconductor testing equipment, had a roughly 8% decline, while Tokyo Electron saw an 8.5% decline.
SoftBank Group, a Japanese investment holding firm that has an interest in Arm, a semiconductor manufacturer, saw a 7.7% decline.
Taiwan Semiconductor Manufacturing Company, a contract chip producer, had a more than 5% drop. The high-performance graphics processing units (GPUs) from Nvidia, which enable big language models—machine learning systems that can detect and produce text—are made by TSMC.
Foxconn, a global brand for Hon Hai Precision Industry based in Taiwan, had an almost 3% decline. It and Nvidia have a strategic alliance.
The selling in Asia has affected semiconductor stocks in Europe. ASML’s stock, which produces essential machinery for producing cutting-edge semiconductors, dropped 5% in early trading. Other European brands with lower rankings included ASMI, BE Semiconductor, and Infineon.
