Tech shares rebound as Nvidia chief urges investors to capitalise on AI dip
The Nasdaq Composite index reverses Friday’s 4 per cent decline as chipmakers rally ahead of key earnings and corporate events.
Technology equities staged a recovery on Monday, reversing a significant sell-off that erased approximately $1 trillion in market value and dragged the Nasdaq Composite index down by 4 per cent on Friday. The rebound was driven by renewed interest in semiconductor stocks, with the iShares Semiconductor ETF rising 4 per cent in premarket trading. Broader gains were recorded across major chipmakers, including AMD and Broadcom, as investors moved to buy the dip.
Nvidia chief executive Jensen Huang provided a catalyst for the recovery during a trip to Seoul, South Korea, where he encouraged market participants to view the recent volatility as an opportunity. Speaking to Bloomberg, Huang stated that investors should be “very happy” about the ability to purchase artificial intelligence-related stocks at a discount. He emphasised that the sector remains in its early stages, asserting, “We’re at the beginning of it, and whatever happened to the stock market, you should be very excited.”
During the same visit, Nvidia and SK Hynix formalised a multiyear agreement to design AI memory chips. This development coincides with a period of heightened activity for the company, which had seen its shares surge more than 2 per cent on Thursday following news that the US approved H200 chip sales to Chinese firms. The approval came as President Donald Trump and President Xi Jinping commenced a two-day summit in Beijing, an event attended by Huang alongside other technology leaders including Elon Musk and Tim Cook.
Market attention is now shifting toward a series of upcoming corporate catalysts. Oracle is scheduled to release its earnings report on Wednesday, with investors closely monitoring the company’s commentary on demand for its AI infrastructure. Simultaneously, Apple is hosting its Worldwide Developers Conference in Cupertino. The event marks CEO Tim Cook’s final developer conference in his current role, and market participants are anticipating an unveiling of an updated AI strategy, specifically an AI-infused version of Siri.
Further ahead, anticipation is building for the anticipated initial public offering of SpaceX on Friday. The offering is expected to value the company at roughly $1.8 trillion, a milestone that would potentially make Elon Musk the world’s first trillionaire. The IPO follows a week of broader market turbulence, including significant declines in Asian markets such as South Korea’s KOSPI, which closed 8.29 per cent lower on Friday amid fears over US interest rates and geopolitical tensions.
