(Bloomberg) — Asian semiconductor stocks slipped as a less-than-outstanding outlook from key chipmaker Nvidia Corp. chilled investor sentiment on the artificial intelligence trade.
Most Read from Bloomberg
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.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
