Semiconductor equities experienced sharp two-way trading this week, with a broad selloff on Wall Street giving way to a premarket rebound on Tuesday. Deutsche Bank warned of renewed pressure on the chip sector, citing valuation concerns, shifting investor sentiment, and potential global supply-chain headwinds.
The PHLX Semiconductor Index had retreated roughly 4% from its recent high, while the Nasdaq Composite and S&P 500 closed lower as investors rotated from high-growth technology names into defensive sectors. Deutsche Bank's note emphasized upcoming earnings reports from major chipmakers as a key test for the sector.
By Tuesday morning, sentiment shifted. Nvidia rose 0.8% in premarket trading as it aimed to break a seven-day losing streak, its longest since September 2022, ahead of Wednesday's earnings report. Intel climbed 3.8%, Marvell gained 3.4%, and Advanced Micro Devices added 2.6%. Intel and Bloom Energy received an additional boost after Nancy Pelosi disclosed purchases of Intel shares and call options and Bloom Energy shares and call options.
In crypto markets, Bitcoin crossed $80,000 overnight for the first time since May, a milestone that lifted digital asset sentiment even as crypto-linked equities were mixed. Strategy slipped 0.5% after a 2.8% gain the previous day, while Coinbase and Robinhood moved higher after falling in the prior session.
Investors now look to Nvidia's earnings after Wednesday's close, as semiconductors remain a bellwether for AI, data center demand, and broader tech sector health. For crypto traders, Bitcoin's move above $80,000 could serve as a key technical and psychological level, though equity volatility remains a potential headwind.
