Nvidia was trading higher in pre-market trading after surging 6% in Thursday’s session as tech stocks lead the market comeback.
As of Thursday, Nvidia has shed more than $750bn (£588bn) in market cap since its June peak as the stock has declined roughly 25% amid worries that the AI trade has run out of steam, and growing concerns over the US economy. “We still sense an urgent demand across the board, and that mitigates the risk in a pause in shipments as customers wait for the next generation of chips to be available in volumes,” New Street Research technology infrastructure analyst Antoine Chkaiban told Yahoo Finance on Thursday.
Bitcoin (BTC-USD)
Bitcoin was trading above $60,000 after a sharp correction that took prices below $50,000. The original cryptocurrency rose as much as 5.3% to briefly top $62,000, extending gains from Thursday.
Some traders think the quick reversal suggests that the recent price dip might have been a bear trap. “What an insane weekly. Probably the most epic bear trap I’ve ever seen,” pseudonymous crypto trader Byzantine General wrote in an X post.
In the medium term, macro factors “will continue to weigh on risk assets,” said Justin d’Anethan, head of business development in Asia-Pacific at crypto market-maker Keyrock. The unwinding of the yen carry trade “isn’t something that gets resolved in a couple of days,” he added. Cryptocurrency markets crashed on Monday in one of the sector’s worst routs since two of the top crypto assets went mainstream this year with the launch of spot-bitcoin and spot-ether exchange-traded funds in the US in January and July, respectively.
TSMC (TSMC34.SA)
Taiwan Semiconductor Manufacturing Co’s revenue rose 45% in July as AI demand continues to drive growth at the chip maker.
TSMC’s consolidated revenue for July reached approximately NT$256.95bn (£6.19bn/$7.91bn), marking a 23.6% increase from June and a significant 44.7% rise from the same period in 2023, setting a new monthly record.
That was an even bigger year-over-year rise for the contract chip maker than the previous month’s figure, which helped trigger a rally in chip stocks as investors assess the strong demand for artificial intelligence hardware.
