The torrid rally in semiconductor stocks came to an abrupt halt this week as chip manufacturers from Silicon Valley to South Korea faced their worst two-session skid since March. Intel, Micron and AMD led the decline, with shares tumbling Monday in what marked a sharp reversal from weeks of strong gains across the sector.

Despite the Monday sell-off, chip stocks rebounded Wednesday as investors positioned for Nvidia's first-quarter earnings report due after the close. The semiconductor giant's results carry outsized weight given its dominant market position and the broader industry's dependence on its performance as a bellwether for demand.

Market participants are watching closely to see if Nvidia can justify the sector's recent valuations or signal a more sustained pullback. The company's guidance and outlook will likely set the tone for semiconductor stocks in the weeks ahead, making these results a critical test for the rally's staying power.