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Nvidia and Other Chip Stocks Had a Terrible September. Wall Street Remains Upbeat.

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Among the 52 companies that MSCI categorizes as semiconductor makers, only Intel has avoided a share-price decline as the month draws to a close.

Nvidia stock finally lost steam in September after soaring for much of the year on hope that wide adoption of artificial intelligence will boost demand for the company’s semiconductors.

Applied Materials fell 9.5%, Lam Research lost almost 11%, and Broadcom is down by 9.8%. Among the 52 companies that MSCI categorizes as semiconductor makers, only Intel has avoided a loss as September draws to a close. Expectations for consistently higher bond yields haven’t helped. Higher returns on risk-free government debt hurt demand for riskier bets like high-growth tech stocks. And higher rates reduce the current discounted value of future earnings—the main reason to pay up for shares of companies like Nvidia.

 

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