Nvidia closed down 1.43% on Friday, leaving its market cap just above $5 trillion. Since its peak at the start of the month, it has lost 4 trillion yuan in market value.
The hardest hit were storage and semiconductor stocks. SanDisk, Western Digital and SK hynix all fell in succession, followed by Micron, Arm, Intel and AMD. Optical communications stocks were hit too. The products everyone was scrambling to buy just recently were suddenly met with sell orders across the board overnight. The Nasdaq fell more than 2% that night, with tech stocks dragging the broader market down.
Jensen Huang was in Berlin and offered some reassurance from afar: “All of this will pass. AI will transform every industry.” Easy enough to say—but that night, money didn’t stick with AI. Instead, it turned to energy and dividend stocks. Oil prices surged in a single day, while Bitcoin fell. We’ll have to wait for new orders in storage and foundry to come through next week to see whether this is just a shakeout or a genuine shift in direction.
The hardest hit were storage and semiconductor stocks. SanDisk, Western Digital and SK hynix all fell in succession, followed by Micron, Arm, Intel and AMD. Optical communications stocks were hit too. The products everyone was scrambling to buy just recently were suddenly met with sell orders across the board overnight. The Nasdaq fell more than 2% that night, with tech stocks dragging the broader market down.
Jensen Huang was in Berlin and offered some reassurance from afar: “All of this will pass. AI will transform every industry.” Easy enough to say—but that night, money didn’t stick with AI. Instead, it turned to energy and dividend stocks. Oil prices surged in a single day, while Bitcoin fell. We’ll have to wait for new orders in storage and foundry to come through next week to see whether this is just a shakeout or a genuine shift in direction.