Nvidia, Advanced Micro Devices and Intel shares rebounded in early pre-market trading on Friday after a brutal sell-off in semiconductor stocks, as investors searched for bargains despite mounting concerns about the artificial intelligence boom.
Nvidia gained more than 4%, AMD advanced over 7% and Intel climbed around 5% in early indications.
Thursday’s losses were far steeper, as Nvidia plunged 9.26%, AMD tumbled 17.26% and Intel dropped 10.33%.
The Philadelphia Semiconductor Index sank 12.25%, while the Nasdaq Composite lost 5.52%, entering correction territory.
Nvidia stock today: Why are semiconductor stocks rising today?
Nvidia closed Thursday at $181.60, its lowest level in seven months, after investors fled businesses tied to the enormous expansion of AI data centres.
The chipmaker’s early Friday gains suggested some buyers considered the sell-off excessive.
The immediate pressure followed Democrats’ midterm election victories, which increased uncertainty about potential restrictions on data-centre construction, electricity supply and permitting.
More fundamentally, investors are questioning whether major technology companies can generate sufficient returns on their investments in computing infrastructure, increasingly financed through borrowing.
Nathan Peterson, director of derivatives research at the Schwab Center for Financial Research, said in commentary published Thursday that concerns about the funding and pace of AI infrastructure development predated the election outcome. The political shift had simply intensified those doubts.
Nvidia’s business remains closely tied to spending by cloud operators, so even a possible slowdown can undermine its valuation.
AMD stock today: Strong earnings contrast with heavy selling
AMD’s pre-market rebound followed a 17.26% Thursday plunge to $404.40, despite earnings that showed substantial growth in its AI hardware business.
Third-quarter revenue increased 45% to $13.38 billion. Data-centre sales surged 97% to roughly $8.5 billion, driven by Instinct accelerators and EPYC server processors.
Adjusted earnings reached $2.09 a share, while management projected approximately $17 billion in fourth-quarter revenue, ahead of expectations.
Chief executive Lisa Su said in AMD’s November 3 earnings release that demand for Instinct and EPYC products continued to strengthen. She expects production of newer systems to support faster growth in the December quarter.
Those figures suggest customers are still ordering powerful chips, despite concerns about infrastructure returns.
However, shareholders are also assessing how much future growth was already reflected in AMD’s valuation before Thursday’s collapse.
Intel stock today: Relief rally meets a weaker outlook
Intel climbed around 5% in early trading indications after tumbling 10.33% on Thursday to $52.25. Its difficulties are different from those confronting Nvidia and AMD.
Although third-quarter revenue rose 21% to $16.5 billion, Intel forecast fourth-quarter sales of $15 billion to $16 billion, below Wall Street’s roughly $17 billion estimate.
Weak personal-computer demand and manufacturing supply constraints continue to cloud its recovery.
Steve Sosnick, chief strategist at Interactive Brokers, told Reuters on Friday that heavily owned AI stocks could rebound after steep losses without resolving the concerns behind them.
He warned that an oversold market did not necessarily mean the underlying risks had disappeared.
AMP economist Shane Oliver offered a more measured outlook, telling Reuters that it was premature to declare a bottom but the retreat could remain a correction if economic conditions held up.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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