The recent descent in the chip sector has destroyed billions of stock market value – and a large part of it goes to Nvidia’s account. The AI giant has been under pressure since the Deepseek shock. Is there a trend reversal or does Nvidia remain the draft horse in the industry?
• Nach effects of Deepseek noticeably noticeable
• nvidia drives losses
• Analog semiconductor probably more robust
The semiconductor industry is experiencing turbulent weeks: Since the announcement of the Chinese AI alternative Deepseek, the share prices of many prominent chip manufacturers have come under pressure. But a company stands out – Nvidia. The AI chip giant alone was probably responsible for around three quarters of the massive market capitalization loss, which the sector had to accept in the past few weeks, as Marketwatch reports.
Nvidia bears the main load of the course crash
The past six weeks have hit the Phlx Semiconductor Index (SOX) heavily. From January 27th, when the markets began to reflect on the possible consequences of deepseek development, until last Thursday the index lost around $ 1.04 trillion in market value. This is $ 783 billion on Nvidia, as can be seen from Dow-Jones data.
The unprecedented decline in the Nvidia share even exceeds the losses of other prominent players such as Broadcom. While Broadcom lost 20.3 percent, Nvidia fell by 21 percent. The comparison to the highest level is even more drastic: Nvidia has lost about $ 900 billion in market capitalization since January 6th.
Why Nvidia is so badly affected
Although Nvidia continues to be a leader in the field of AI chips, investors probably see several challenges. While earlier quarter reports regularly exceeded expectations, the latest numbers have been less spectacular. In addition, the upcoming market launch of the new Blackwell chip generation seems to ensure margin pressure.
In this context, Jordan Klein, Analyst at Mibuho, emphasizes that Broadcom could currently be “the best of all” among AI chip manufacturers. Because of its smaller market size, the company could have a “runway for a much higher AI sales expansion”, as Marketwatch quotes. Nevertheless, Broadcom’s shares could not escape the industry trend.
Analog semiconductors are more robust
During the AI chip sector, companies were able to record comparatively stable price developments on analog semiconductors. Citi-Research Analyst Christopher Danely sees an upcoming relaxation in the analog semi-conductor market. In the industrial sector in particular, there are positive developments, while the automotive market is still making challenges. “We believe that the recovery of the analogue market is imminent and that every analogue company will feel this, since the sales of the analogue companies have fallen by around 30 % since the maximum,” says Marketwatch.
Where does Nvidia go to?
The coming weeks should be decisive for Nvidia. The company will probably present new products at the upcoming GTC conference. Analysts and investors are likely to observe whether Nvidia can gain confidence with new innovations and a convincing strategy-or whether the deepseek shock leads to a sustainable re-evaluation of the AI chip sector.
Editor finance.net
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