Semiconductor Stocks Drop Ahead of NVIDIA Earnings Report
Semiconductor stocks are falling ahead of NVIDIA's upcoming earnings report, with Intel down 5%, AMD dropping 4%, and Taiwan Semiconductor Manufacturing slipping 3%. The iShares Semiconductor ETF (SOXX) is down nearly 4% as traders reduce exposure in anticipation of the results. NVIDIA has historically seen a negative price reaction on its earnings day despite consistently beating EPS estimates. The sector's decline appears to be driven by de-risking behavior rather than broader tech market weakness, with semiconductor stocks falling at twice the rate of general technology ETFs like IYW. Intel leads the sell-off due in part to its strong year-to-date performance and high exposure within chip-focused funds. NVIDIA accounts for a significant portion of assets in major tech ETFs, amplifying pre-earnings volatility. Options data shows increased put buying ahead of the earnings report, with an elevated put-call ratio signaling caution among traders. The market is closely watching how NVIDIA's guidance might affect broader semiconductor demand and AI infrastructure spending.
Tickers: $AMD $INTC $MU $NVDA $TSM