The oscillation on the other side of the ocean spread to the domestic market.
On the morning of April 22nd, NVIDIA's industrial chain led the decline. Among them, the computing power chips of Science and Technology Shuguang and Cambrian once fell by more than 5%; Industrial Fulian in the server sector fell more than 7%; The optical module sector, including Xinyi Sheng, Zhongji Xuchuang, and Tianfu Communication, saw a significant drop of over 10%. In addition, Hongbo Group, which provides computing power rental for NVIDIA, Shenghong Technology, NVIDIA's top domestic computing power board supplier, and Jinbaize, which provides technical support for NVIDIA, all experienced slight declines to varying degrees.
As of noon trading, the decline in related stocks has narrowed. Zhongji Xuchuang fell 8.54%, Xinyi Sheng fell 6.93%, Tianfu Communication fell 6.2%, Zhongke Shuguang fell 4.52%, and Cambrian fell 2%.
Last Friday, Nvidia's stock price plummeted by 10%, experiencing its largest daily decline since a 18.5% decline on March 16, 2020. Its total market value evaporated over $200 billion (approximately RMB 1448 billion) in one day, setting the second largest single day market value loss record in the history of a US company.
On February 3, 2022, Meta's market value evaporated by approximately $232 billion in just one day due to its disappointing quarterly financial report and a decrease in daily active users. It is the company with the largest daily market value loss in history.
Nvidia's stock price plummeted this time, leading the record for the largest weekly market value loss in the history of the "Magnificent Seven" team. In the past week, the decline in stocks of Apple, Microsoft, Amazon, Alphabet Inc, Meta, Tesla, and Nvidia, known as the "magnificent seven person group" of technology, has resulted in a total decrease of $950 billion in their market value, setting the worst weekly market value loss in the history of this group.
It is reported that the main trigger for the decline in Nvidia's stock price was the market panic caused by the closely related server supplier "Ultramicro Computer". The core business of ultramicro computers is to produce and sell computers to enterprises for website servers, data storage, and AI training. The company maintains close relationships with multiple heavyweight partners, including NVIDIA, NASA, and Nippon Electric.
"Microelectronics has always been regarded by the market as an important indicator for observing the development of NVIDIA and AI markets. When the stock price of Microelectronics plummets, the negative impact quickly spreads to NVIDIA and the entire industry," technology analyst Zhao Song told Time Weekly reporters.
On April 19th, AMD Computer unusually did not release preliminary financial results in advance, which was seen by the industry as a negative signal - it did not disclose data on its AI business and did not provide a positive explanatory statement, which may indicate that quarterly performance was lower than expected.
On that day, the stock price of AMD Computer also experienced a sharp drop, with a drop of up to 23.14%, more than 40% from its historical high in March. It is worth mentioning that "the stock price was dragged down by performance" has already happened once in the case of ultramicro computers.
On August 7, 2023, AMD hit a new high in its stock price, but after disclosing its financial report the next day, its stock price directly fell by 23.39%. The reason is that although the company's performance exceeded market expectations in the fourth quarter of the 2023 fiscal year, the median guidance for the next quarter did not meet expectations.
At the same time, the Federal Reserve's release of its semi annual financial stability report has also accelerated investors' withdrawal from technology stocks. The report states that sustained inflation is seen as the top risk to financial stability, with hedge fund leverage reaching its highest level since at least 2013. A strategist at Bank of America has stated that due to the strong US economy and intensified inflation, investors are concerned that the Federal Reserve will maintain higher interest rates for a longer period of time.
Under this influence, popular technology stocks in the US stock market have generally fallen. Except for NVIDIA and AMD, Netflix fell more than 9%, Micron, Broadcom, and Meta fell more than 4%, Asma and TSMC fell more than 3%, Lilly, Amazon, Texas Instruments, Intel, and Qualcomm fell more than 2%, and Tesla, Microsoft, Apple, and Google fell more than 1%.
In addition, the downward adjustment of growth expectations in the chip market has to some extent affected Nvidia's stock price performance.
On April 18th, TSMC lowered its growth forecast for the chip market, lowering the global logic semiconductor industry's growth forecast for this year from over 10% to around 10%.
"At present, the market has different views on this decline." Zhao Song said, "Some analysts believe that the global semiconductor retreat, especially from the hot AI transactions, means the collapse of the foam; but some people believe that after this adjustment, there may be a healthy period, after all, mainstream funds will not leave the AI card table in the short term."
"At the end of April, multiple technology companies will release their first quarter financial reports for this year, and the large-scale sell-off last Friday does not rule out the possibility of investors wanting to restructure their investment structure. Whether it is continuing to bet or releasing bearish sentiment, a certain fact is that the pattern of domestic and foreign technology markets will gradually become clearer in the midst of changes." Zhao Song added.