Asian Chip Stocks Tumble as Nvidia's Outlook Dampens AI Enthusiasm

Asian Chip Stocks Decline as Nvidia's Outlook Damps AI Frenzy

Asian semiconductor stocks slipped as a less-than-outstanding outlook from key chipmaker Nvidia Corp. chilled investor sentiment on the artificial intelligence trade. Among Nvidia suppliers, shares of Korean memory maker SK Hynix Inc. dropped as much as 6.8% while those of Japanese tester maker Advantest Corp. fell 3.6%. The Bloomberg Asia Pacific Semiconductors Index slid 1.6%. American depository receipts of leading foundry Taiwan Semiconductor Manufacturing Co. shed more than 4% in late trading.

Asian Chip Stocks Decline as Nvidia's Outlook Damps AI Frenzy

(Bloomberg) -- Asian semiconductor stocks slipped as a less-than-outstanding outlook from key chipmaker Nvidia Corp. chilled investor sentiment on the artificial intelligence trade. Among Nvidia suppliers, shares of Korean memory maker SK Hynix Inc. dropped as much as 6.8% while those of Japanese tester maker Advantest Corp. fell 3.6%. The Bloomberg Asia Pacific Semiconductors Index slid 1.6%. American depository receipts of leading foundry Taiwan Semiconductor Manufacturing Co. shed more than 4% in late trading. "Nvidia had a good result yet share price was down on the back of big expectations for next year," said Jun Bei Liu, a portfolio manager at Sydney-based Tribeca Investment Partners Pty Ltd. The cooling off in the shares after their strong performance this year "provides buying opportunities as long term structural growth remains intact," she said. Nvidia's shares fell more than 8% in late US trading after giving a revenue forecast that missed the highest analyst estimates and flagging production snags with its new Blackwell chips. The announcements may deepen concerns of overheating of the AI rally that sparked a recent selloff and rotation into less-loved areas of the equity market.

Tech stocks in Asia fall amid broad declines in the region after Nvidia results

Samsung Electronics' fourth-generation high bandwidth memory or HBM3 chips have been cleared by Nvidia for use in its processors for the first time, three people briefed on the matter said. Tech and chip-related stocks in Asia fell on Thursday, after U.S. chip darling Nvidia reported its second-quarter results overnight, amid a broader decline in the region's key markets. Losses were most pronounced in companies with direct links to the U.S. tech giant, such as South Korean chipmakers SK Hynix and Samsung Electronics. SK Hynix, which manufactures high bandwidth memory chips -- used in AI applications -- for Nvidia, saw shares slump as much as 6.74%. Samsung Electronics, the highest weighted stock on the South Korea's benchmark stock index, Kospi, fell as much as 3.8%. While the extent of Samsung's supplier relationship with Nvidia is not fully known, the company is expected to be manufacturing HBM chips for some Nvidia products, according to Reuters. Other direct suppliers to Nvidia such as Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry -- known internationally as Foxconn -- saw losses of as much as 2.8% and 2.96%, respectively.