The stock market began giving back some of Friday's gains on Monday, and in late-morning trading, 11:10 a.m. ET, the tech-heavy Nasdaq is down 1.1%, with semiconductor stock Nvidia (NASDAQ: NVDA) losing twice that -- 2.2%. Is there a reason Nvidia is going down so much more than the rest of the tech market? Investors in general seem upset by the continuing drumbeat of bad economic news -- rising inflation, rising interest rates, slowing growth in China, and a supply chain crisis that just doesn't seem to want to end.
China's top chipmaker Semiconductor Manufacturing International Corp said on Friday it anticipates smartphone sales from its clients this year to fall by at least 200 million units due to the Russia-Ukraine war and China's COVID lockdowns. While SMIC previously had issues fulfilling orders due to high demand amid a global chip shortage, customers from the smartphone, personal computer and household appliance sectors were now cancelling orders due to these two events, CEO Zhao Haijun told analysts after the company's quarterly results. Demand for such products "dropped like a rock" as sales in Russia and Ukraine were heavily impacted while China's COVID lockdowns meant that companies had trouble delivering products or had to shut stores, he said.
(Bloomberg) -- China’s biggest chipmaker and a major iPhone supplier cut their outlooks for the second quarter, joining a growing list of manufacturers warning about the fallout from lockdowns aimed at containing the country’s worst Covid outbreak in two years.Most Read from BloombergElon Musk Sows Doubt Over His $44 Billion Twitter TakeoverSony PlayStation Staff Fume Over CEO’s Abortion CommentsUkraine Latest: US Senator Delays Aid Vote; Russia Eyes BorderTerraform Again Halts Blockchain Behind