- Wednesday, October 16, 2024
The semiconductor sector experienced a significant downturn at the beginning of 2024, following its strongest annual performance in two decades. The VanEck Semiconductor ETF (SMH) recorded a 3.3% decline during afternoon trading, with all 25 of its equity components showing lower values. Throughout 2023, the ETF had surged by an impressive 72.3%, marking its best year since achieving a remarkable record growth of 87.3% back in 2003.
Tech Giants Face Steep Declines
Advanced Micro Devices Inc. (AMD) was the largest decliner on Tuesday, with their shares plummeting by 6.1%. Intel (INTC), whose stock rose by an astounding 90.1% in 2023, suffered a 4.8% setback. This decrease came after Intel's most successful year since it skyrocketed by over 100% in 2003.
ASML Holding N.V.: Blocked Exports Impede Growth
ASML Holding N.V. (ASML), the Netherlands-based chip-equipment maker, experienced a 4.8% slide in its U.S.-listed shares, making it the third-worst performing stock in the ETF. The decline was in response to reports that certain equipment exports to China had been blocked due to security concerns expressed by the Netherlands, Japan, and the U.S.
Nvidia Corp. Emerges as the Leading Performer
In contrast, Nvidia Corp.'s (NVDA) stock emerged as the top performer not only within the chip ETF but also within the S&P 500 index. In 2023, its shares surged by an impressive 238.9%, marking the best year for Nvidia since the remarkable 308.4% rally in 2001. However, on Tuesday afternoon, the stock experienced a slight decline of 2.8%.
Overall, the semiconductor sector's recent selloff has marked a turbulent start to 2024 following its outstanding performance the previous year. Investors are now closely watching the market to see how these industry giants overcome this setback.
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