Chip stocks rebound as Nvidia, AMD and Intel gain after $3.7 trillion semiconductor sell-off

US semiconductor stocks rebounded on Tuesday, with major chipmakers opening higher after suffering heavy losses in the previous trading session. The Philadelphia Semiconductor Index (PHLX Semiconductor Index), which tracks major semiconductor companies, also moved higher.

Nvidia, AMD and Intel shares rise as US semiconductor stocks recover after a $3.7 trillion market sell-off. (Pexel)Nvidia shares gained 2% in early trading on Tuesday, recovering some of the losses suffered by the chipmaker during the recent semiconductor sell-off.

Nvidia was among the companies that lost the most market value during the decline, according to Yahoo Finance. AMD shares jumped 4%, recovering part of the 7% decline recorded on Monday. Investors were also watching the company's quarterly earnings report, which was scheduled to be released after the US stock market closed on Tuesday.

Intel shares climbed 4% in early trading, recovering some of the ground lost during the recent sell-off. The stock had fallen 8% on Monday as semiconductor shares faced heavy selling pressure. Memory chipmaker Micron Technology also recovered, with its shares rising 2% on Tuesday.

This came after the stock dropped 7% during Monday's trading session. Other memory and storage companies also opened higher. South Korean memory chipmaker SK Hynix, along with Sandisk, Seagate Technology and Western Digital, recorded gains in early trading on Tuesday, according to Yahoo Finance.

Broadcom shares also edged higher as the wider semiconductor sector showed signs of recovery. The gains came as investors returned to chip stocks after the sharp decline in the previous session. The semiconductor sector has lost around $3.7 trillion in market value since October 6, according to calculations by Yahoo Finance.

The massive decline shows the scale of the recent sell-off in chip and memory stocks. The recent sell-off followed growing concerns about spending on artificial intelligence (AI). Semiconductor companies have benefited significantly from the expansion of AI infrastructure, as technology companies invest heavily in chips and computing systems needed to run AI services.

Concerns about AI spending and debt among neocloud companies also weighed on semiconductor stocks. Neocloud companies provide specialised cloud computing services, including computing power needed for AI workloads. Worries about their debt levels and the sustainability of AI-related investments added pressure on chip stocks in recent weeks, according to Yahoo Finance.

Tuesday's gains offered some relief to semiconductor investors after the sector lost trillions of dollars in market value. However, the rebound came after a steep decline, with several major chipmakers still recovering from their recent losses.

Durva More is a Senior Content Producer at Hindustan Times, where she covers finance, and global news. She brings experience across digital and television journalism, with a strong focus on breaking news, business reporting, and international affairs.

Before joining Hindustan Times, Durva worked as an International News Writer at The Economic Times, covering a diverse range of subjects including global politics, business, sports, entertainment, and major world events.

She also worked as a Business Reporter with NDTV Profit. A postgraduate diploma holder in Journalism from the Asian College of Journalism, Durva is passionate about field reporting and storytelling. She thrives on the adrenaline of chasing stories, speaking with people from different walks of life, and amplifying voices that deserve to be heard.

Her reporting is driven by curiosity, accuracy, and a commitment to making complex subjects accessible to readers. When she is not chasing stories or covering breaking news, Durva enjoys reading books and painting. She loves exploring new ideas, meeting people, and learning about different perspectives.

For her, both journalism and art are ways to understand the world and tell stories that matter.Read More