NVIDIA, Semiconductor Stocks Slide as Chinese Antitrust Investigation Weighs on Market

On Tuesday, the New York Stock Exchange saw notable fluctuations in the stocks of semiconductor companies, including NVIDIA, Alphabet, Apple, Tesla, Walgreens Boots Alliance, Alaska Airlines, Boeing, Oracle Corporation, and MongoDB.

NVIDIA’s stock price dropped 2.69%, marking its fourth consecutive day of decline. Analysts attribute this to the ongoing impact of the Chinese government’s antitrust investigation. Additionally, news that TSMC, the world’s largest semiconductor foundry, reported a 34% year-over-year increase in November sales, but a 12.2% decrease compared to the previous month also negatively affected the market.

As a result, other semiconductor stocks also experienced significant declines, including Broadcom (-3.98%), AMD (-2.39%), Qualcomm (-2.66%), Intel (-3.12%), and Super Micro Computer (-8.20%).

Bloomberg analysts noted that TSMC’s 34% growth in November sales suggests it could still reach the upper end of its guidance despite U.S. export controls against China. They also forecast strong demand for artificial intelligence (AI) and advanced smartphone chips will drive growth, likely continuing into next year.

Google showcased its self-developed quantum chip, Willow, which caused Alphabet’s stock price to jump 5.59%. Google announced that it had developed a quantum computer capable of solving a problem that would take the world’s most powerful supercomputer ten septillion years to solve in just five minutes.

Apple shares soared to an all-time high of $248.21 during trading. The stock closed at $247.77 (+0.41%), marking a new record closing price for the second consecutive day.

Tesla stock rose 2.87%, marking its fifth consecutive day of gains. The closing price reached $400.99, nearing the all-time high closing price of $409.97 on November 4, 2021.

Morgan Stanley raised its target price for Tesla from $310 to $400, recommending it as a top pick in the automotive sector, positively impacting the stock.

General Motors announced it would halt further investments in Cruise’s robotaxi business, which had previously led investments and positively influenced Tesla stock. Tesla unveiled its robotaxi, the “CyberCab,” in October.

Walgreens Boots Alliance, the largest pharmacy chain in the U.S., saw its stock jump 17.74% following reports discussing selling a stake to a private equity firm and transitioning to a private company. Walgreens is reportedly negotiating to sell its stake to U.S. private equity firm Sycamore Partners, aiming for a deal closure early next year.

Alaska Airlines’ stock surged 13.16% after raising its fourth-quarter profit outlook. Boeing also saw a 4.50% increase.

Oracle Corporation shares plummeted 6.67% after it reported second-quarter results that fell short of market expectations.

Software company MongoDB experienced a 16.9% drop despite raising its annual performance forecast.

Luxury homebuilder Toll Brothers saw its stock fall 6.9% after exceeding quarterly performance expectations but providing a disappointing outlook for the current quarter.