Chip stocks were among the biggest losers in Thursday’s technology-sector selloff as Nvidia Corp.’s blowout results failed to drive the market higher amid a heated lead-up to the report.
Momentum for Nvidia NVDA, +0.10% can be viewed in different ways for the rest of the chip industry. While AMD and others have their own AI chips and the potential to benefit from similar tailwinds as those businesses ramp up, Nvidia is far ahead in the artificial-intelligence market.
Chip stocks have been on a weak trend over the past three weeks and are “back on that path as [Nvidia was] not enough in many folks’ minds,” Klein said.
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