TECH - US Chip Giants AMD NVIDIA Qualcomm Start 2024 With Decline After Stellar Performance Last Year | Benzinga
U.S. chip stocks have begun 2024 with a decline, following a remarkable performance in the previous year, which marked the best surge since 2009.
What Happened: Major chip companies such as Advanced Micro Devices Inc (NASDAQ:AMD), Qualcomm Inc (NASDAQ:QCOM), and Broadcom Inc (NASDAQ:AVGO) saw a drop of more than 2%, causing a 2.1% decrease in the PHLX semiconductor index on Wednesday, according to a report by Reuters.
This comes after a nearly 7% decline in the chip index since setting a new high on Dec. 27. The Federal Reserve's latest minutes from the December meeting showed that policymakers acknowledged that interest rates are likely at or near the cycle's peak, indicating a potential shift in monetary policy as the economic landscape evolves.
In 2023, the PHLX semiconductor index rose by 65%, driven by enthusiasm for artificial intelligence and expectations that the Fed would reduce interest rates. This performance surpassed both the Nasdaq and S&P 500, which gained 43% and 24% respectively.
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