AI Chip Stocks Rally Faces New Headwinds - Why Are Nvidia, Taiwan Semiconductor, Broadcom And Marvell Tech Stocks Sliding?

Anusuya Lahiri

August 28, 2024

Semiconductor and chip stocks, including Nvidia Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Co (NYSE:TSM), Broadcom Inc (NASDAQ:AVGO), Marvell Technology Inc (NASDAQ:MRVL), Lam Research Corp (NASDAQ:LRCX) are trading lower Wednesday ahead of Nvidia’s fiscal second-quarter earnings, reflecting the interconnected semiconductor ecosystem.

The sell-off also follows key Nvidia partner Super Micro Computer, Inc (NASDAQ:SMCI) getting called out by Hindenburg for its accounting malpractices, related party transactions, and more, leading to a delayed annual report filing. Super Micro stock is down close to 27%.

Nvidia’s second-quarter fiscal 2025 revenue guidance of $27.44 billion-$28.56 billion is a big jump from its second-quarter fiscal 2024 revenue of $13.51 billion, which bears testimony to the continued artificial intelligence tailwind for the stock. The stock is up over 172% in the last 12 months.

JPMorgan’s Harlan Sur expects Broadcom to be worthy of a $150 billion-plus AI semiconductor opportunity over the next five years after it bagged ChatGPT parent OpenAI and a major AI ASIC customer.

The analyst backed his projections with Broadcom’s plans to ramp Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google’s next-gen 3nm TPU AI processor and Meta Platforms Inc (NASDAQ:META) being an essential partner of Broadcom. Broadcom stock is up 87% in the last 12 months.

Sur had earlier called out Broadcom’s 80% market share in the $5 billion-$7 billion datacenter/AI Ethernet switching and routing chipset market, which places it ahead of Nvidia and Marvell Technology.

Taiwan Semiconductor is a key Nvidia supplier and also leads the global foundry market with a 62% share as of the second quarter of 2024. It guided third-quarter revenue of $22.4 billion—$23.3 billion, up from the $17.3 billion reported a year ago, backed by robust demand for AI chied in hyper-performance computing and smartphones.

The contract chipmaker looks to boost prices of its 3-nanometer and 5-nanometer process products to maintain its margin goals. Taiwan Semiconductor stock is up over 80% in the last 12 months.

AI server company Super Micro is another beneficiary of the AI wave. It expects first-quarter revenue of $6 billion—$7 billion, compared to the $2.12 billion revenue it reported a year ago. The stock has increased over 61% in the last 12 months, backed by AI server demand from Big Tech giants.

Marvell Technology expects second-quarter revenue of $1.19 billion—$1.31 billion versus the $1.34 billion it reported a year ago, driven by ramping custom AI silicon for data centers, enterprise networking, and carrier infrastructure. The stock has risen over 24% in the last 12 months.

Lam Research expects first-quarter revenue of $3.75 billion—$4.35 billion, up from the $3.48 billion it reported a year ago. Thanks to the demand for AI-powered chips, the company is looking to tap the wafer fab equipment spending. The stock has risen over 20% in the last 12 months.

Price Actions: TSM stock is down 2.07% at $167.01 at the last check on Wednesday. AVGO is down 2.66% at $157.06, MRVL is down 2.55% at $67.94 and LRCX is down 2.49% at $801.29.

Image via Nvidia Blog

Recommended

Man Who Predicted Trump Win Issues Shocking New Election Prediction - Ad

5 Stocks That Could Triple in a Week - Ad

DO NOT Make Another Trade Without Seeing This First - Ad

Movies about Kamala Harris and Donald Trump hit theaters in October. Find out the differences between the movie and why one candidate wants a ban.

Scaramucci Says Melania Trump Would Prefer Kamala Harris To Donald Trump As President

Anthony Scaramucci has claimed that Melania Trump would rather see Kamala Harris win the presidency than her own husband.

Oil = Monthly Income

Oil = Monthly Income - Ad

Right now, there's an unusual $25 way to collect MONTHLY income from the oil markets. It's not a stock, bond, or anything you've likely heard about... But it's by far my #1 investment opportunity for 2024.

Americans Split On Election Result Acceptance Between Harris And Trump, Here Is The Candidate They Think More Likely To Accept Voters' Verdict

A survey conducted by ABC News/Ipsos has shed light on the American public's confidence in the acceptance of the upcoming November presidential election results by Vice President Kamala Harris and former President Donald Trump.

Trump Vs Harris: Who Do Russia, Iran And China Favor In 2024 Election? Intelligence Officials Weigh In

U.S. intelligence officials believe that Russia, Iran and China have preferred candidates in this year's U.S. presidential election. Each of these foreign powers has different views on who would best serve their interests.

This $2 Stock Outshines Historic Gold Rally!

This $2 Stock Outshines Historic Gold Rally! - Ad

Gold has soared 25% in the last 6 months, but this young company has more than doubled that return. With a price target nearly double its current value, it's caught the eye of 40+ investment banks and funds. Discover the name of this standout company today and see why it's a potential gold mine for investors.

E. Jean Carroll Case: Appeals Court Skeptical of Trump's Bid to Overturn Sexual Abuse Verdict

E. Jean Carroll's case sees an appeals court skeptical of Donald Trump's bid to overturn a $5 million verdict for sexual abuse and defamation.

UK says it's suspending some arms exports to Israel over the risk of breaking international law

LONDON (AP) — U.K. Prime Minister Keir Starmer's government said Monday that it's suspending exports of some weapons to Israel because they could be used to break international law — a move with limited military impact intended to increase pressure by Israel's frustrated allies for an end to .

Why We Just Sold Half of Our Stocks

Why We Just Sold Half of Our Stocks - Ad

We've already sold all or part of 52 different stocks this year - more than any other period in our firms' history. That's because there are five cracks forming below this market that threaten us with a widespread collapse. We could see the market tumble by 50% and unemployment will triple.

Donald Trump's Billions On Hold As Insiders Sell Off Truth Social Shares

Insiders at Trump Media & Technology Group owned social media platform Truth Social have started offloading their shares.

Scaramucci: Trump Wins Billionaires' Support Despite Coming Off As 'Raging Lunatic,' Harris Backs A 'Ridiculously Stupid Idea'

Trump is someone who can't keep to his messaging and his rival Kamala Harris can gain an upper hand by going on offensive, says Scaramucci.

Oil Surge Predicted...But Are You Ready?

Oil Surge Predicted...But Are You Ready? - Ad

Do you own oil and gas stocks? Or are you thinking about buying some? If so, you need to see my #1 oil play for 2024. But it's NOT oil stocks, futures, or anything you've likely heard about. Rather, it's an unusual way to potentially bank monthly income from the oil and gas markets.

Wall Street Eyes Strong Finish To The Week Despite Futures Suggesting Moderation In Tech Buying: Strategist Cautions Against Factoring Rapid, Steep Cuts Ahead Of Next Week's Fed Meeting

Now that the twin inflation reports are in the rearview mirror, U.S. stocks are hanging onto the slender optimism as traders look ahead to the Federal Reserve’s rate-setting meeting.

Judge allows smoking to continue in Atlantic City casinos, dealing blow to workers

ATLANTIC CITY, N.J. (AP) — A judge on Friday allowed smoking to continue in Atlantic City’s casinos, giving some measure of relief to the city's struggling casino industry while rebuffing workers who have long sought to be able to breathe clean air on the casino floor.

Imminent FDA Decision Could End Obesity in America...

Imminent FDA Decision Could End Obesity in America... - Ad

...and spark a 224,000% sales surge for one tiny micro-cap stock. Channelnomics says it "Could have a greater impact on the world than artificial intelligence." BMO Capital calls it "A goldmine for investors." The Wall Street Journal says it's "A Gold rush."

Apple Reportedly Plans To Switch To OLED For All iPhones Starting 2025, Not Just The Top-Tier Flagships

Apple plans to transition all iPhone models, including the lower-priced iPhone SE, to OLED displays by 2025, phasing out LCDs and excluding Japanese suppliers like Japan Display and Sharp from its handset business.

Maryland awards contract for Francis Scott Key Bridge rebuild after deadly collapse

BALTIMORE (AP) — Maryland transportation leaders on Thursday approved a contract for rebuilding the Francis Scott Key Bridge several months after the 1.6-mile (2.6-kilometer) steel span of a massive container ship that lost power and crashed into one of its supporting columns.

The Last Time Gold Flashed This Warning Sign, the Market Dropped 80%

The Last Time Gold Flashed This Warning Sign, the Market Dropped 80% - Ad

Both President Trump and Elon Musk are warning about something that could send the market down 50%, real estate down 40% and savings accounts down 30%.

Former Deputy Claims Harris Helped Close Backpage, Fallout Affects Sex Workers

In the midst of the 2024 presidential campaign, Kamala Harris finds herself under the microscope for her involvement in the closure of Backpage.com, a well-known online platform for adult services, during her time as the Attorney General of California.

The iPhone 16, new AirPods and other highlights from Apple's product showcase

CUPERTINO, Calif. (AP) — Apple squarely shifted its focus toward artificial intelligence with the unveiling of its hotly anticipated iPhone 16 along with a slew of new features coming with the next update to the device’s operating system. While the new phone lineup headlined Monday's showcase, the tech giant also shared updates to its smartwatch and AirPod lineups.

This Is How the AI Bull Market Ends

This Is How the AI Bull Market Ends - Ad

The AI bull market as we know it right now will end...And all the big popular AI stocks investors are piling into right now will NOT be the where the biggest returns will come from. And for investors who don't know how the market is changing and where it's going...They could end up left behind.

Red Lobster says it will soon exit bankruptcy protection after judge approves seafood chain's sale

NEW YORK (AP) — After months of dozens of restaurant closings and headlines about “endless shrimp” woes, Red Lobster is poised to soon exit from Chapter 11 bankruptcy protection.

China's Chipmaking Investments Top US, Taiwan, South Korea Combined: What It Means For Nvidia, ASML

China invests $25 billion in chipmaking equipment, surpassing spending by South Korea, Taiwan, and the U.S. This could impact top chipmakers and suppliers like NVIDIA and ASML.

New "Living Missile" to Replace Nuclear Missiles

New "Living Missile" to Replace Nuclear Missiles - Ad

CBS News Reports: "It's an entirely new type of weapon." The New York Times Reports: "No existing defense can stop it." And one small company is building them for the Pentagon!

GameStop Shares Are Trading Higher: This Week In Review

GameStop Corporation (NYSE: GME) shares are up Friday. Here's what you need to know.

Japan Leads Asia Markets Decline, Europe Slides; Crude Oil Falls below $70 - Global Markets Today While US Slept

US stocks close lower on weak manufacturing data and Fed rate cut uncertainty. Asian markets follow with major declines. Commodities and futures down.

Man Who Called Nvidia at $1.10 Says Buy This Now...

Man Who Called Nvidia at $1.10 Says Buy This Now... - Ad

In 2004, a man predicted Nvidia's rise. Now, he says a new company, which IPO'd in 2023, could soar like Nvidia. It signed a major deal with Apple for its AI tech in iPhones and iMacs. Could it be the next trillion-dollar company? See why he believes it's among "The Next Magnificent Seven."

'Beetlejuice Beetlejuice' jolts box office with $110 million opening weekend

After 36 years of waiting, the juice is finally loose again in this time racking up a record-breaking $110 million in its premiere weekend.

California governor signs laws to protect actors against unauthorized use of AI

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom signed off Tuesday on legislation aiming at protecting Hollywood actors and performers against unauthorized artificial intelligence that could be used to create digital clones of themselves without their consent.

Buffett's Big A.I. Secret (Handle With Care)

Buffett's Big A.I. Secret (Handle With Care) - Ad

A.I. is the talk of the town...But here's what they're NOT telling you. Former investment banking V.P. Ross Givens is letting the cat out of the bag. He's leaking a revolutionary new development, which changes everything. It will kick off A.I.'s massive second wave.

Ethereum Co-Founder Vitalik Buterin Invests Ethereum Proceeds Into Aave, But Trader Says 'Not The Area To Buy'

Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin swapped a significant sum of ETH to deposit into a DeFi protocol, with traders predicting a bright future for it.

US Steel CEO David Burritt Blasted By United Steelworkers President After $15B Deal With Nippon Steel Comes Under Biden Administration Scrutiny: 'Get A Decent CEO'

David McCall, President of United Steelworkers met Nippon Steel's Executive Vice President Takahiro Mori this summer to describe the union's demands, particularly ensuring that the Japanese steelmaker's parent sign the deal

Exposed: Democrats' Secret Plan to Keep Trump Out of the White House

Exposed: Democrats' Secret Plan to Keep Trump Out of the White House - Ad

Former advisor to the CIA, the Pentagon and the White House Jim Rickards just released this shocking new video exposing Democrats' secret plan to keep Trump out of the White House... Even if he wins the election. See the details and learn how to prepare... Because this could trigger the biggest constitutional crisis in our nation's history.

Johnson & Johnson-Spin Off Kenvue Wins Lawsuit Over Pain Killer Tylenol 'Rapid Release' Gelcaps

Kenvue defends against a consumer lawsuit alleging that its Tylenol "Rapid Release" gelcaps did not relieve pain faster than regular tablets. A federal judge ruled the claims were preempted by FDA regulations.

Video game performers reach agreement with 80 video games on AI terms

LOS ANGELES (AP) — After striking for over a month, have reached agreements with 80 games that have signed interim or tiered budget agreements with the performers' union and accepted the artificial intelligence provisions they have been seeking.

A 10,000% Dividend?!?

A 10,000% Dividend?!? - Ad

Have you seen this strange oil investment? It's NOT a stock, bond, or private company...It has NO age requirements...You do NOT need to be accredited to participate... And you can get in for as little as $25.

Firm offers bets on congressional elections after judge clears way; appeal looms

ATLANTIC CITY, N.J. (AP) — You can now do more than just vote in this fall's Congressional elections: You can bet on them, too.

Top 3 Tech Stocks You'll Regret Missing This Month

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down.

My No. 1 Oil Play for 2024

My No. 1 Oil Play for 2024 - Ad

Moderna Faces Analyst Downgrades Amid Revised R&D Restructured Strategy and Delayed Profitability Target

Moderna announces plans to reduce R&D spending by $1.1 billion by 2027, focusing on ten key products. Analysts highlight near-term challenges, lowered price targets, and a delayed breakeven to 2028, with optimism around Moderna's oncology pipeline and long-term platform potential.

Trending Now