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Nvidia's strong earnings can't keep its stock from sliding — along with other chipmakers

Feb 27, 2025 - qz.com
Nvidia and other semiconductor stocks, including AMD, Micron, Broadcom, and Intel, experienced declines in early Wall Street trading despite Nvidia's strong earnings report that exceeded fourth-quarter estimates. The results, while positive, did not meet some investors' high expectations for a complete blowout. Nvidia's robust order book for its latest models indicates continued investment in AI, alleviating concerns that cheaper AI models from competitors like DeepSeek might impact spending. Analysts view Nvidia's performance as a positive indicator for AI demand and the investment cycle.

In other news, TSMC's stock fell in Taipei amid discussions about potential overseas joint ventures. Taiwan's Economy Minister stated that government permission is required for such ventures, except in China. The Trump administration has encouraged TSMC to consider acquiring or partnering with Intel's chipmaking operations, but TSMC remains uninterested. Taiwan is negotiating with the U.S. to secure favorable conditions for its companies in light of potential new American tariffs.

Key takeaways:

  • Nvidia and other semiconductor stocks fell in early Wall Street trading despite Nvidia's strong earnings report.
  • Rival chipmakers like AMD, Micron, Broadcom, and Intel also experienced declines, reflecting market volatility rather than company performance.
  • Nvidia's strong order book indicates continued investment in AI, countering concerns about competition from cheaper AI models.
  • TSMC's stock fell amid discussions about overseas joint ventures and potential U.S. tariffs, with no interest in acquiring Intel's chipmaking operations.
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