FMP

FMP

Nvidia and Chip Stocks Struggle After Premarket Gains Amid DeepSeek Concerns

Nvidia (NASDAQ:NVDA) and other semiconductor stocks opened Tuesday lower, erasing premarket gains, signaling that investor sentiment remains fragile after Monday's historic sell-off.

Market Reaction

  • Nvidia: Initially up nearly 5% in premarket trade, but reversed to -0.6% after the market opened.

  • Other Chip Stocks:

    • Broadcom (NASDAQ:AVGO): -0.6%
    • AMD (NASDAQ:AMD): -0.8%
    • Micron (NASDAQ:MU): -1.7%
    • Marvell Technology (NASDAQ:MRVL): Flat
  • Indexes:

    • S&P 500: -0.1%
    • Nasdaq 100: -0.3%

DeepSeek's Impact on AI Stocks

  • Historic Market Cap Loss: Nvidia lost $593 billion in market value Monday, marking the largest single-day wipeout for a U.S. company.
  • Nasdaq Plunge: The index fell 3.1%, with Nvidia leading the decline.
  • Competitive Fears: DeepSeek's low-cost AI assistant, which outpaced ChatGPT in downloads on Apple's app store, raised fears of market disruption.

Looking Ahead

Despite short-term volatility, investors tracking AI chip performance and financial stability can leverage the Ratios (TTM) API for real-time financial analysis of semiconductor leaders.