Chip industry in upheaval

Why Intel and Nvidia are weakening despite the AI boom

Nvidia boss Jensen Huang sold shares worth hundreds of millions of US dollars in July.(Bild: AFP)

One sector was hit harder than others during the stock market bloodbath at the beginning of the week. The chip industry, which had previously shone particularly brightly, suffered all the more. The weakening giants Intel and Nvidia stand out in particular - albeit for different reasons.

These are actually golden times in the chip industry: Following the bottleneck caused by the coronavirus pandemic and the resulting delivery delays, chip factories are springing up all over the world - lured by lavish government subsidies. The ever-growing AI hype did the rest, making chip giant Nvidia the most valuable company in the world for a time. But now the air is getting thinner again.