The semiconductor sector is experiencing a mixed trading session on February 5, 2025, influenced by several key developments. Notably, Morgan Stanley's downward revision of NVIDIA's GB200 shipment estimates has created uncertainty in the market. The revision, which lowers shipment forecasts from 30,000-35,000 units to 20,000-25,000 units, is attributed to a slowdown in the cloud computing market and increased competition from DeepSeek's cost-effective AI solutions. Additionally, potential U.S. tariffs on Taiwanese chips are adding to the volatility, as they could lead to increased production costs for TSMC, further impacting the semiconductor supply chain.
In contrast, Alphabet's announcement of a $75 billion capital expenditure plan for 2025 has provided a positive catalyst for certain semiconductor stocks. This substantial investment, aimed at expanding AI infrastructure, is expected to benefit chipmakers like NVIDIA and Broadcom, as Alphabet's spending will focus on technical infrastructure reliant on advanced chips. Despite the competitive pressures from emerging AI models, Alphabet's commitment to its AI strategy underscores the ongoing demand for semiconductor technology, offering a counterbalance to the broader market uncertainties.
The Direxion Daily Semiconductor Bear 3x ETF (SOXS) rose to $21.43, up 1.59% as of 10:00 AM ET on February 5th.