Asian stocks fall as tech selloff deepens; KOSPI drops over 3% ahead of Nvidia earnings
Key Takeaways
- •South Korea's KOSPI fell more than 3% as the technology sell-off deepened across Asian markets ahead of Nvidia's earnings.
- •Nvidia shares declined for a seventh consecutive session, the company's longest losing streak since 2022, after it told customers it would raise prices on AI systems due to ship early next year.
- •The KOSPI is heavily weighted in semiconductor stocks, including Samsung Electronics and SK Hynix, with SK Hynix serving as a major supplier of the high-bandwidth memory used in Nvidia's AI systems.
- •Nvidia's chips are manufactured by Taiwan's TSMC, giving investors across Asian markets a direct stake in the U.S. chipmaker's outlook.
- •Nvidia's results are among the most closely watched releases on the global earnings calendar because demand for its AI accelerators is widely treated as a gauge of spending on AI data centers.
Asian stocks fell as the technology sell-off deepened, with South Korea's KOSPI tumbling more than 3% ahead of Nvidia's earnings.
Nvidia shares declined for a seventh consecutive session, marking the chipmaker's longest losing streak since 2022, after the company told customers it would raise prices on AI systems due to ship early next year.
The KOSPI's sensitivity to AI chip news reflects the index's heavy weighting in semiconductor stocks, with Samsung Electronics and SK Hynix among its largest components. SK Hynix is a major supplier of the high-bandwidth memory used in Nvidia's AI systems, and Nvidia's chips are manufactured by Taiwan's TSMC, giving investors across Asian markets a direct stake in the U.S. chipmaker's outlook.
Nvidia's results are among the most closely watched releases on the global earnings calendar because demand for its AI accelerators is widely treated as a gauge of spending on AI data centers. The report arrives with markets already weighing the price increases the company has signalled for AI systems due to ship early next year.
