Shares in the Asian chip maker sink following Nvidia’s losses by Investing.com

Investing.com– Shares in Asian chipmakers fell on Thursday, tracking overnight losses in market darling Nvidia after the chipmaker beat guidance on revenue and margins, fueling concerns about AI trading.

NVIDIA Corporation (NASDAQ: of billions of dollars from the chipmaker.

CEO Jensen Huang also confirmed earlier reports that the firm was having trouble producing its most advanced line of artificial intelligence chips, called Blackwell.

The news caused steep losses in Nvidia shares, with the losses spreading to Asia, where several chipmakers have direct exposure to the AI ​​giant.

of South Korea SK Hynix Inc (KS:) was the worst performer of the lot, falling 5.6% even as it unveiled a new generation of memory chips designed to reduce power requirements. SK Hynix is ​​a key supplier of advanced memory chips to Nvidia.

Peer Samsung Electronics Co Ltd ( KS: ), which is also vying to supply Nvidia with memory chips, fell 2.8 percent.

Taiwan’s TSMC ( TW: ) ( NYSE: ) — the world’s largest chip maker by foundry capabilities and a major Nvidia supplier — fell 2.4 percent in Taipei trade after its U.S. shares they sank by more than 3%. Honor Hai Precision Industries, also known as Foxconn ( TW: ), another major Nvidia supplier, fell more than 2 percent.

Japanese manufacturer of semiconductor test equipment Advantest Corp. (TYO:) lost 0.9%, while Tokyo Electron Ltd. ( TYO: ), the country’s largest chip maker, fell 1.5 percent.

In China, Semiconductor Manufacturing International Corp (HK: ) – the country’s largest chipmaker and a local rival to Nvidia – fell 1.3 percent.

The broader technology is retreating as the AI ​​trade comes into question

Losses spilled out of chipmaker stocks and into the broader technology sector as Nvidia’s disappointing outlook raised questions about how profitable the so-called “AI trade” will be in the long run.

Before Nvidia, average earnings from several of its Wall Street tech peers pointed to rising costs and relatively thin returns from AI investments.

That notion weighed on broader tech stocks in Asia on Thursday. China’s BAT (LON: ) trio of Baidu Inc (HK: ) (NASDAQ: ), Alibaba (HK: ) (NYSE: ) and Tencent Holdings Ltd (HK: ) — all three of which have ongoing AI programs — fell between 1% and 3% in Hong Kong trade.

SoftBank Group Corp. ( TYO: ) of Japan — which has heavy exposure to AI through its technology investments — fell about 2%. Unit of Softbank – British chip design firm Arm Holdings (NASDAQ: )- fell sharply on Wednesday and extended its losses after Nvidia’s gains.