The semiconductor sector of the US stock market has seen a significant decline before the market opens. NVIDIA, Taiwan Semiconductor, Broadcom, Arm, ASML, and Super Micro Computer all briefly fell over 3%. Accompanied by strong employment data in the US, traders have lowered their expectations for interest rate cuts by the Federal Reserve, making the future situation unclear.
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HSBC believes that the supply chain issues for NVIDIA's GB200 are expected to continue into the first half of fiscal year 2026 (from February 2025 to July 2025), resulting in limited &#34;exceeding expectations&#34; growth potential for NVIDIA in the first half of the year, and facing greater pressure in the second half (from August 2025 to January 2026). HSBC also added that it is currently difficult to determine the specific location of the GB200 supply chain issues, especially as NVIDIA's GB200 rack server architecture becomes increasingly complex. Previously, HSBC had concerns about issues such as copper connection modules from Amphenol, but these problems are expected to be resolved before the first quarter of fiscal year 2026.
Additionally, HSBC stated that it has lowered its earnings per share forecast for NVIDIA for fiscal year 2026 by 6% and reduced the target price from $195 per share to $185 per share (based on a 32 times PE valuation)

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The semiconductor sector in the US stock market continued its previous downward trend in pre-market trading today, with NVIDIA, Taiwan Semiconductor, Broadcom, Arm, ASML, and Super Micro Computer all briefly falling over 3%. HSBC: NVIDIA's "better-than-expected" growth potential in the first half of the year is limited

- The U.S. semiconductor sector experienced significant pre-market declines, with major companies like Nvidia and TSMC dropping over 3%.  
- Strong U.S. employment data has led traders to lower expectations for Federal Reserve interest rate cuts, creating uncertainty for the future.  
- HSBC predicts that Nvidia's GB200 supply chain issues will persist into the first half of fiscal 2026, limiting growth potential and prompting a 6% reduction in earnings per share forecasts and a target price cut from $195 to $185.

The US stock semiconductor sector fell sharply before the market opened