Nvidia Leads Chip Stock Rebound, Billionaire Investor Buys 1 Million Shares To Defy AI 'Bubble' Fears

Semiconductor stocks rebounded on Wednesday after several sessions of steep losses as investors reassessed geopolitical risks, tech-sector volatility, and fresh commentary from market figures.

Chip Stocks Bounce After Multi-Day Selloff

Major semiconductor names including Nvidia Corp (NASDAQ:NVDA), Advanced Micro Devices, Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Intel Corp (NASDAQ:INTC), Arm Holdings Plc (NASDAQ:ARM), Micron Technology, Inc (NASDAQ:MU), ON Semiconductor Corp (NASDAQ:ON), Super Micro Computer, Inc (NASDAQ:SMCI) recovered some ground after a selloff that began late last week.

The decline came despite Nvidia reporting strong earnings, as investors focused on concerns around AI profitability, heavy capital spending, broader macroeconomic pressures, and escalating geopolitical tensions in the Middle East.

Reports also indicated that Iran explored backchannel discussions aimed at ending the conflict a day after the U.S. and Israel launched joint strikes.

Jim Cramer Urges Investors To Avoid Panic Selling

CNBC’s Jim Cramer said investors should remain cautious and avoid panic selling amid sharp market swings driven by geopolitical tensions and tech-stock volatility.

Cramer noted that semiconductor stocks—especially memory names such as Micron, Seagate Technology Holdings Plc (NASDAQ:STX), and Western Digital Corp (NASDAQ:WDC)—fell sharply during the session. He attributed part of the pressure to spillover from a significant selloff in South Korea’s stock market, where Samsung Electronics Co Ltd (OTC:SSNLF) and SK Hynix dropped steeply.

Because those companies dominate the memory sector, their declines often ripple into U.S. semiconductor stocks.

He suggested that margin calls in South Korea may have forced investors to sell U.S. chip stocks, adding to the decline.

However, Cramer said he does not see a fundamental problem in the memory or data-storage industries despite the selloff.

Cramer urged investors to remain patient amid volatile market swings, warning that panic selling can cause them to miss sharp rebounds when opportunistic buyers step in.

Billionaire Leo KoGuan Buys Nvidia Shares

Billionaire investor Leo KoGuan said he purchased 1 million shares of Nvidia on Tuesday, signaling strong confidence in the future of artificial intelligence.

KoGuan wrote on X on Wednesday that he believes “AI is not a bubble” and is still in its early stages.

He later told Bloomberg News that he plans to buy another 1 million Nvidia shares soon to show support for what he described as a nervous market.

KoGuan, who has an estimated net worth of $12.8 billion according to the Bloomberg Billionaires Index, previously became one of Tesla Inc‘s (NASDAQ:TSLA) largest individual shareholders.

Although he has grown more critical of Elon Musk and Tesla’s decision to award the CEO a pay package that could reach $1 trillion, KoGuan said most of his holdings remain in Tesla shares and Treasury bills.

KoGuan added that Tesla’s energy business, cybercab technology, and Teslabot are not fully reflected in the company’s valuation and suggested that long-term investors could still benefit from buying the stock.

NVDA Price Action: Nvidia shares were up 0.68% at $181.27 at the time of publication on Wednesday, according to Benzinga Pro data.

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