Semiconductor stocks trim losses as investors buy the dip

Semiconductor stocks recovered from heavy morning selling on Friday as investors bought the dip, with Nvidia dropping only 1% after a steeper intraday decline and chipmakers AMD, Broadcom, Intel, Marvell, and Qualcomm all flipping from negative to positive territory. The selloff was triggered by Chinese startup Moonshot AI's release of Kimi K3, a powerful open-source AI model that has intensified global competition concerns, while Alphabet's Gemini 3.5 Pro reportedly remains behind schedule.

Why it matters: Global semiconductor stocks have shed $3.3 trillion in market value since June 22, and Wall Street is looking to hyperscaler capex and upcoming earnings to determine whether AI infrastructure spending justifies current valuations.