Curated by THEOUTPOST
On Thu, 29 Aug, 8:03 AM UTC
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[1]
Asia stocks fall as Nvidia rattles tech, but overall losses limited By Investing.com
Investing.com-- Asian stocks retreated on Thursday, pressured chiefly by losses in the technology sector following underwhelming guidance from market darling Nvidia, although expectations of lower interest rates helped limit overall losses. Declines in the tech sector were also relatively muted, given that NVIDIA Corporation (NASDAQ:NVDA) still beat expectations with its quarterly earnings. Analysts were seen maintaining a bullish stance on the firm. Regional markets took a weak lead-in from Wall Street, with U.S. stock index futures falling in Asian trade as concerns over Nvidia rattled the technology sector. The Dow Jones Industrial Average and the S&P 500 were also nursing a fall from record highs. Tech losses were weighted largely towards chipmakers, especially those with direct exposure to Nvidia- which fell as much as 8.5% in aftermarket trade. In Japan, chip testing equipment maker Advantest lost 0.5%, while Tokyo Electron shed 1.1%. Semiconductor Manufacturing International Corp (HK:0981)- the biggest chipmaker in China and a local rival for Nvidia, fell slightly. Broader technology stocks also fell, as Nvidia's earnings spurred some concerns that the so-called "AI trade" that had underpinned the sector over the past year was now losing more steam. Losses in tech also came amid a broader pivot out of the sector and into more economically sensitive stocks, as investors looked to lower interest rates in the coming months. Barring tech, losses in broader Asian markets were limited by buying into sectors poised to benefit from lower interest rates. Australia's ASX 200 fell 0.4%, benefiting from its lower tech weightage. The index had also shrugged off a stronger-than-expected reading on consumer inflation, released on Wednesday. China's Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.1% and 0.5%, respectively, languishing at over six-month lows amid little signs of improving sentiment towards the country. Futures for India's Nifty 50 index pointed to a mildly positive open, after the index appeared to have made more headway above the closely-watched 25,000 level. The Nifty and the BSE Sensex 30 were in spitting distance of new peaks. Recent dovish comments from the Federal Reserve cemented expectations for a September rate cut, which bodes well for stock markets. Focus this week is on U.S. gross domestic product data and PCE price index data- the Fed's preferred inflation gauge- for more economic cues.
[2]
Asian chipmaking stocks sink tracking Nvidia losses By Investing.com
Investing.com-- Asian chipmaking stocks fell on Thursday, tracking overnight losses in market darling Nvidia after the chipmaker's guidance on revenue and margins underwhelmed, raising concerns over the AI trade. NVIDIA Corporation (NASDAQ:NVDA) fell as much as 8.5% in after-hours trade as an underwhelming outlook on current quarter revenue and gross margin largely eclipsed an earnings beat and a $50 billion buyback from the chipmaker. CEO Jensen Huang also confirmed earlier reports that the firm was facing difficulties in producing its most advanced line of artificial intelligence chips, called Blackwell. The news sparked steep losses in Nvidia's stock, with losses spilling over into Asia, where several chipmakers have direct exposure to the AI giant. South Korea's SK Hynix Inc (KS:000660) was the worst performers of the lot, dropping 5.6% even as it unveiled a new generation of memory chips aimed at reducing power requirements. SK Hynix is a key supplier of advanced memory chips to Nvidia. In China, Semiconductor Manufacturing International Corp (HK:0981)- the country's biggest chipmaker and a local competitor for Nvidia, fell 1.3%. Losses spilled over from chipmaking stocks and into the broader technology sector, as Nvidia's underwhelming outlook raised questions about just how profitable the so-called "AI trade" was bound to be in the long run. Before Nvidia, middling earnings from several of its tech peers on Wall Street had pointed to rising costs and relatively muted returns from investment in AI. This notion weighed on broader Asian tech stocks on Thursday. China's BAT (LON:BATS) trio of Baidu Inc (HK:9888) (NASDAQ:BIDU), Alibaba (HK:9988) (NYSE:BABA) and Tencent Holdings Ltd (HK:0700)- all three of which have ongoing AI programs- fell between 1% and 3% in Hong Kong trade. Japan's SoftBank Group Corp. (TYO:9984)- which is exposed heavily to AI through its tech investments- fell about 2%. Softbank's unit- the British chip designing firm Arm Holdings (NASDAQ:ARM)- had fallen sharply on Wednesday and extended its losses after Nvidia's earnings.
[3]
US stock futures fall, Nvidia sinks after revenue guidance underwhelms By Investing.com
Investing.com-- U.S. stock index futures fell in evening deals on Wednesday, with losses geared towards technology stocks as market darling Nvidia dropped as an underwhelming revenue forecast eclipsed strong earnings. Nvidia's earnings spurred an extension in the flowsout of technology stocks seen in recent weeks, with the prospect of lower interest rates sparking plays into more economically sensitive sectors. This trade also sparked losses during Wednesday's session, with Wall Street indexes falling from record highs. While the firm clocked a stronger-than-expected profit for the May-July quarter and also announced a $50 billion share buyback, its revenue guidance for the current quarter disappointed investors hoping for better growth, especially after a year of outsized earnings. Nvidia forecast revenue of $32.5 billion, plus or minus 2%, compared to Reuters estimates of $31.77 billion and Bloomberg estimates of $31.9 billion. Reports from both publications suggested that Nvidia's forecast had missed the top end of some analyst expectations. Nvidia's gross margin also missed expectations in the July quarter, as did its margin outlook for the current quarter. The print sparked concerns that an artificial intelligence-driven boom in earnings was slowing- a trend that was more apparent in earnings from other major technology stocks, released in July. Nvidia was sitting on a 150% valuation spike this year on the back of hype over AI. The stock was also close to record highs, making it vulnerable to a heavy degree of profit-taking that had battered the broader tech sector. Other major technology stocks fell after Nvidia's earnings, with chipmakers bearing the brunt of losses. Wall Street indexes fell from record highs on Wednesday, as technology stocks were sold off in anticipation of Nvidia's earnings. The S&P 500 fell 0.6% to 5,592.18 points, while the NASDAQ Composite fell 1.1% to 17,552.44 points, and had severely lagged its peers in recent sessions. The Dow Jones Industrial Average fell 0.4% to 41,091.42 points, benefiting from its relatively lower weightage of technology stocks. Growing expectations of an interest rate cut in September had buoyed Wall Street indexes in recent sessions, although gains were this time more geared towards economically sensitive sectors. PCE price index data- the Federal Reserve's preferred inflation gauge- is due on Friday and is set to offer more cues on inflation.
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Nvidia's disappointing revenue forecast triggers a sell-off in Asian tech stocks, particularly impacting chipmakers. The broader Asian market experiences limited losses as investors remain cautious ahead of the Jackson Hole symposium.
Nvidia Corp, a leading chipmaker and artificial intelligence (AI) giant, released a revenue forecast that fell short of market expectations, causing ripples across global tech markets 1. The company's shares plummeted by 6.6% in after-hours trading, setting a somber tone for tech stocks worldwide.
The impact of Nvidia's forecast was particularly pronounced in Asian markets, where chipmaking stocks experienced significant declines 2. Taiwan Semiconductor Manufacturing Co (TSMC), a key player in the semiconductor industry, saw its shares drop by 2.9%. Other major Asian chipmakers, including Samsung Electronics and SK Hynix, also faced downward pressure, with their stocks falling by 2.5% and 4.2% respectively.
While the tech sector bore the brunt of the sell-off, the overall losses in Asian markets were relatively contained 1. The MSCI's broadest index of Asia-Pacific shares outside Japan dipped by 0.8%, while Japan's Nikkei index showed resilience, declining by a modest 0.2%. This limited impact suggests that investors are maintaining a cautious stance, balancing the tech sector's woes against other market factors.
The ripple effect of Nvidia's forecast extended to U.S. stock futures, with all three major indices – S&P 500, Dow Jones, and Nasdaq 100 – trading lower 3. Nasdaq 100 futures, which are heavily weighted towards tech stocks, experienced the most significant decline, dropping by 0.9%.
As markets grapple with the tech sector's challenges, investor attention is increasingly turning towards the upcoming Jackson Hole symposium 1. This annual gathering of central bankers is expected to provide crucial insights into future monetary policy directions, particularly from the U.S. Federal Reserve. The symposium's outcomes could have significant implications for global market trends and investor sentiment.
Nvidia's position as a frontrunner in AI technology had led to soaring market expectations. The company's stock had more than tripled in value this year, driven by the AI boom 3. However, the recent forecast suggests that even high-flying tech companies are not immune to market realities and changing economic conditions.
The market reaction to Nvidia's forecast raises questions about the sustainability of the AI-driven tech rally. Investors and analysts will be closely monitoring upcoming earnings reports and guidance from other major tech companies to gauge the sector's overall health and future prospects. The current market response underscores the delicate balance between innovation-driven optimism and pragmatic financial expectations in the tech industry.
Reference
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Asian stock markets face downward pressure following Nvidia's underwhelming quarterly results, sparking concerns about the AI chip market and broader tech sector performance.
8 Sources
8 Sources
Nvidia and other chip stocks experience fluctuations following a significant sell-off. Investors grapple with recession fears and concerns about the sustainability of the AI-driven rally in the tech sector.
9 Sources
9 Sources
Asian and global markets experience a significant downturn following Nvidia's stock plunge and disappointing US economic data. Investors reassess tech valuations and economic growth prospects amid rising uncertainty.
7 Sources
7 Sources
Nvidia's stock price drops nearly 10% in premarket trading, falling below $100 per share. The decline impacts the broader semiconductor sector and occurs amidst a global stock market downturn.
3 Sources
3 Sources
Asian semiconductor stocks experienced a significant decline following Nvidia's cautious outlook, signaling a potential cooling in the AI-driven tech rally. The ripple effect was felt across major Asian markets, raising questions about the sustainability of the AI boom.
3 Sources
3 Sources
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