Market Insight | Semiconductor stocks collectively decline as US ISM Manufacturing Index falls below market expectations, NVIDIA's stock price plunges exacerbating market concerns
Semiconductor stocks have performed poorly recently, with SOLOMON SYSTECH, Hua Hong Semiconductor, Shanghai Fudan, and SMIC all experiencing varying degrees of decline. The U.S. ISM Manufacturing Index for August was 47.2%, lower than expected, intensifying market concerns about an economic recession, leading to the worst performance of the three major stock indexes since August 5th. Tech stocks were particularly impacted, with NVIDIA's stock price plummeting by nearly 10%, causing a market capitalization loss of approximately $300 billion and raising concerns about an artificial intelligence investment bubble
According to the Wise Finance APP, semiconductor stocks collectively fell. As of the time of publication, SOLOMON SYSTECH (02878) fell by 4.35% to HKD 0.33; HUA HONG SEMI (01347) fell by 2.51% to HKD 16.32; SHANGHAI FUDAN (01385) fell by 1.48% to HKD 10.64; and SMIC (00981) fell by 2.32% to HKD 16.
On the news front, in the United States, the August ISM Manufacturing Index was only 47.2%, which was 0.4 percentage points higher than July but still below the market's expectation of 47.9%. This index is an important indicator of whether the manufacturing sector is expanding or contracting, with a value below 50% indicating a contraction. This data has intensified fears in the market that the U.S. economy may be heading towards a recession, leading to significant stock market volatility.
As a result, the three major U.S. stock indexes recorded their worst day since the global stock market sell-off on August 5th. The sell-off in tech stocks was particularly severe, with chipmaker NVIDIA losing over 9% in regular trading, becoming the focus of the market. NVIDIA's stock price fell by nearly 10% in regular U.S. trading, causing a market capitalization loss of $279 billion. If we include the post-market drop of up to 2%, its market value has evaporated by approximately $300 billion. NVIDIA's stock price plummeted again, reigniting investors' strong concerns that the AI frenzy has become irrational, as well as widespread worries about the diminishing acceptance of the "AI grand narrative logic" among investors