US semiconductor stocks rebounded on Tuesday, with major chipmakers opening higher after suffering heavy losses in the previous trading session. The Philadelphia Semiconductor Index (PHLX Semiconductor Index), which tracks major semiconductor companies, also moved higher.Nvidia, AMD and Intel shares rise as US semiconductor stocks recover after a $3.7 trillion market sell-off. (Pexel)Nvidia shares gained 2% in early trading on Tuesday, recovering some of the losses suffered by the chipmaker during the recent semiconductor sell-off.
Nvidia was among the companies that lost the most market value during the decline, according to Yahoo Finance.Nvidia and AMD shares rise after Monday's lossesAMD shares jumped 4%, recovering part of the 7% decline recorded on Monday. Investors were also watching the company's quarterly earnings report, which was scheduled to be released after the US stock market closed on Tuesday.Also read: US gas prices fall 17 cents in biggest weekly drop in months, national average hits $4.12 ahead of midtermsIntel shares climbed 4% in early trading, recovering some of the ground lost during the recent sell-off.
The stock had fallen 8% on Monday as semiconductor shares faced heavy selling pressure.Memory chipmaker Micron Technology also recovered, with its shares rising 2% on Tuesday. This came after the stock dropped 7% during Monday's trading session.
Other memory and storage companies also opened higher. South Korean memory chipmaker SK Hynix, along with Sandisk, Seagate Technology and Western Digital, recorded gains in early trading on Tuesday, according to Yahoo Finance.Intel and memory chip stocks recoverBroadcom shares also edged higher as the wider semiconductor sector showed signs of recovery.
The gains came as investors returned to chip stocks after the sharp decline in the previous session.The semiconductor sector has lost around $3.7 trillion in market value since October 6, according to calculations by Yahoo Finance. The massive decline shows the scale of the recent sell-off in chip and memory stocks.Also read: US stock futures mixed as Apple slides 4.5%, investors await midterm election resultsNvidia recorded the biggest loss in dollar terms among major semiconductor companies during this sell-off.
However, Intel suffered the steepest percentage decline among the major chipmakers, with its shares falling nearly 50%, according to Yahoo Finance.Chip stocks lose $3.7 trillion in market valueThe recent sell-off followed growing concerns about spending on artificial intelligence (AI). Semiconductor companies have benefited significantly from the expansion of AI infrastructure, as technology companies invest heavily in chips and computing systems needed to run AI services.Concerns about AI spending and debt among neocloud companies also weighed on semiconductor stocks.
Neocloud companies provide specialised cloud computing services, including computing power needed for AI workloads. Worries about their debt levels and the sustainability of AI-related investments added pressure on chip stocks in recent weeks, according to Yahoo Finance.Tuesday's gains offered some relief to semiconductor investors after the sector lost trillions of dollars in market value.
However, the rebound came after a steep decline, with several major chipmakers still recovering from their recent losses.