led a selloff in chip stocks on Wednesday after their earnings disappointed investors, who had piled into the sector on hopes rising AI investments would boost demand.Its forecast of $4-billion in AI chip sales for 2024 fell short of Wall Street’s lofty expectations, having been used to Nvidia’s massive forecasts over the past year.NVDA-Q
“As the market is shifting more towards risk-off over the last couple of days, it’s not shocking that unless these companies are beating earnings by a mile that some of the hot air is coming out of them for now,” said Russell Hackmann, president of Hackmann Wealth Partners. “Stepping back, AMD has several customers who are all trying to ramp MI300 very quickly. This is stressing the supply chain to a certain extent,” said analysts at TD Cowen.
Other AI-linked chip firms also traded lower, with Marvell Technology down 1.5 per cent and Nvidia falling 1.7 per cent.
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