Tuesday’s trading in global semiconductor equities was erratic following the previous session’s decline in Nvidia shares.

Early trading saw a decline in the stock prices of semiconductor companies in Europe and Asia as investors responded to Nvidia’s more than $500 billion market capitalization loss over the course of three trading days. However, some of the stocks recovered their losses as shares of the massive American chip manufacturer increased by almost 5.5% as of Tuesday at 11:40 a.m. ET.

The stock of STMicroelectronics, a semiconductor company located in Switzerland, finished the day down by more than 1.4%.

As Nvidia shares rebounded, ASML, the massive Dutch semiconductor equipment company, recovered from earlier in the day’s losses to close up 0.18% in Europe.

In the international semiconductor market, ASML is a major participant. The company produces and markets extreme ultraviolet lithography (EUV) equipment, which is used by semiconductor manufacturers to create integrated circuits.

In contrast, ASMI increased 0.6% after declining earlier in the day, while Soitec fell 0.1%. The Stoxx 600 all-European finished down about 0.3%.

Moreover, Asian semiconductor stocks saw a wild day. The shares of South Korean company Samsung dropped 0.3%, and those of Taiwanese chipmaker MediaTek sank 1.8%.

The biggest chipmaker in the world, TSMC, and SK Hynix, both increased by 0.5% and 0.9%, respectively, despite the unfavourable mood.

It follows three straight days of steep declines in Nvidia shares, which saw a 13% drop from the all-time highs on Thursday.

Nvidia’s stock fell 6.7% on Monday, marking the second-biggest decline of the year; however, early trading on Tuesday saw a rise in the shares.

The corporation had a market valuation of over $3.4 trillion last week, surpassing both Apple and Microsoft to become the most valuable U.S. company. After setting an intraday record on Thursday, Nvidia’s market worth had been destroyed by more than $540 billion by the end of Monday.

According to Nvidia, there is still a strong market for its highly sought-after artificial intelligence graphics processing units, or GPUs.

Its chips are purchased by businesses like Microsoft, Google, Amazon, Oracle, and Meta for billions of dollars to power their data centres and cloud services.

Nvidia plans to begin distributing its Blackwell next-generation AI processors later this year. According to some experts, this may herald a new phase of major growth for Nvidia and its partners.

(Adapted from NBCNewYork.com)