Asian Semiconductor Stocks Decline Amid Nvidia Concerns

Asian semiconductor stocks experienced significant declines following Nvidia's disappointing earnings outlook, which raised concerns about the profitability of the AI trade. Nvidia's shares fell up to 8.5%, triggering losses across its suppliers, including SK Hynix, Samsung, and Taiwan's TSMC. Investor sentiment was further dampened as the Bloomberg Asia Pacific Semiconductors Index slid by 1.6%. The broader technology sector also faced pressure, with analysts noting that Nvidia's performance has become a key indicator for market health. Amidst this, expectations surrounding Nvidia's earnings report have heightened, with many viewing it as crucial for the AI-driven market rally. Overall, the mixed performance in global markets reflects investor caution ahead of Nvidia's results, anticipated to impact stock valuations significantly.