Nvidia hits 52-week low as chips plunge after hot inflation report
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Nvidia (NASDAQ:NVDA) hit a new 52-week low and Advanced Micro Devices (NASDAQ:AMD) tumbled nearly 9% as semiconductor stocks fell sharply Tuesday after the U.S. government released its latest CPI report that came in hotter-than-expected, likely resulting in further pressure from the Federal Reserve.
Nvidia (NVDA) closed at $131.31, down nearly 10%, but not before hitting $130.99 late in the session, marking a new 52-week low for the Jensen Huang-led company. Other companies, such as Qualcomm (NASDAQ:QCOM), Broadcom (AVGO), Texas Instruments (TXN) and Analog Devices (ADI) all fell 4% or more. 
Intel (NASDAQ:INTC), Micron Technology (MU) and ON Semiconductor (ON) all fell 7% or more.
On Monday, it was reported that Intel (INTC) may hold off its upcoming Mobileye initial public offering due to the weakness in the stock market.
During the month of August, the consumer price index, or CPI, rose 0.1%, hotter than the -0.1% decline that analysts were expecting. Excluding the volatile food and energy prices, the core CPI rose 0.6%, compared to estimates for a gain of 0.3%.
The hot inflation points to an increasingly hawkish Federal Reserve as it tries to return inflation back to its 2% target per its dual mandate.
Following the economic data, traders placed an 82% probability of a 75 basis point hike at next week's Federal Open Markets Committee meeting and an 18% probability of a 100 basis point increase, according to data from CME Group. 
On Monday, traders foresaw a 91% probability of a 75 basis point hike, but did not see a 100 basis point hike in Fed's future.
Earlier this month, investment firm Stifel started coverage on Advanced Micro Devices (AMD), highlighting the company's strong execution and an "expanding IP portfolio."