Broadcom, Nvidia, AMD among decliners as chips sector awaits Nvidia results

Semiconductor stocks were mostly lower on Monday as the sector awaited quarterly results from Nvidia (NASDAQ:NVDA) later this week, which some on Wall Street have deemed “the most important in years.”

Nvidia shed 2.4% even as Morgan Stanley said its guidance could be impacted by demand of its H200 GPUs, which the investment firm characterized as strong.

“So for at least some customers, the preference has been to get more Hoppers, where supply was starting to ramp down,” analyst Joseph Moore wrote in an investor note. “So as HBM3e is the binding constraint, that supply can be shifted over to Hopper to drive up higher H200 volume. The H200 (essentially a midlife kicker for Hopper with higher memory content and a shift to HBM3e) has been popular, but has been bottlenecked by HBM3e allocation to hoppers.”

Additionally, Goldman Sachs said Nvidia shares could move 9% either way, based on options trades.

Nvidia is slated to report quarterly results on Wednesday after the close of trading. A consensus of analysts expect the company to earn $0.64 per share on $28.71B in revenue.

AMD (NASDAQ:AMD), which often trades in sympathy with Nvidia, fell nearly 3% in midday trading.

Broadcom (NASDAQ:AVGO) shares fell more than 3.5% even as the company announced a deal with Hitachi Vantara to bring a new cloud solution for artificial intelligence.

Micron (NASDAQ:MU) shares fell 3.3% even as it was reported that the memory maker will purchase two factories in Taiwan from electronics company AUO in a deal worth up to $620M.

Several other semiconductor stocks were also lower on Monday, including Texas Instruments (TXN), Qualcomm (QCOM), Analog Devices (ADI) and Intel (INTC), each of which fell 1% or more.