Nvidia stock is again in bear territory, pulling down semiconductor ETFs and the broader market while investors fret about September, the worst month historically for equities. Can anything save chip stocks and cure the overall market malaise?
NVDA has fallen 20% from its all-time high set in July, while the semiconductor proxy exchange-traded fund, the VanEck Semiconductor ETF (SMH) is down 18%.
This decline marks the second time in one month that the largest semiconductor stock and tech sector bellwether produced such a bearish price drop.
The broader market is down more than 2% since its July high mark, as measured by the SPDR S&P 500 ETF Trust (SPY) .
The next best shot for an injection of positivity may come from this week’s earnings call for Broadcom, Inc (AVGO), a top holding in SMH, as well as the popular iShares Semiconductor ETF (SOXX) and many other tech and U.S. large-cap growth ETFs.
The semiconductor infrastructure giant will report its Q3 earnings after the market closes Thursday, and as with Nvidia’s quarterly reports, analysts will watch for Broadcom to beat expectations while listening for clues about the growth outlook for artificial intelligence.
Here’s a breakdown of what to look for in Broadcom’s earnings report:
Broadcom ( AVGO ) and Nvidia ( NVDA ) are both major players in the semiconductor industry, but they operate in different segments.
While both companies are semiconductor giants, their distinct product focus and market positioning differentiate them within the industry. The greatest impacts on NVDA and AVGO stock performance for the remainder of 2024 will likely be driven by AI adoption, market sentiment, and global economic conditions.
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