Samsung Electronics’ fourth-generation high-bandwidth memory, or HBM3, chip has been approved by Nvidia for use in its processors for the first time, three people familiar with the matter said.
Sung-jun Cho | Bloomberg | Getty Images
Asian technology and chip-related stocks fell on Thursday after U.S. chip darling Nvidia reported second-quarter results overnight, with major markets in the region generally falling.
The biggest losses have been felt by companies with direct ties to the U.S. tech giant, such as South Korean chipmaker SK Hynix and Samsung Electronics.
Shares of SK Hynix, which produces high-bandwidth memory chips for Nvidia for artificial intelligence applications, plummeted 6.74%.
Samsung Electronics is the most heavily weighted stock in South Korea’s benchmark index Stock index, Korea Composite Stock Price Index, The decline was as high as 3.8%.
While the extent of Samsung’s supplier relationship with Nvidia is not entirely clear, the company Expected to manufacture HBM chips for some Nvidia productsReuters reports.
Other direct suppliers to Nvidia, such as British Semiconductor and Hon Hai Precision Industry The losses of the company known internationally as Foxconn were as high as 2.8% and 2.96% respectively.
This spillover extends to other technology stocks as well, albeit to a lesser extent. Japanese semiconductor related stocks such as Renesas, Advant test and Tokyo Electronics fell 3.2%, 3.6% and 3.49% respectively.
Separately, shares of Chinese chipmakers listed in Hong Kong fell despite being largely unrelated to Nvidia’s value chain. minimum wage, Some state-owned enterprises fell by about 1.4%, and Huahong Semiconductor fell by 1.66%.
Runaway train slows down
Equity Armor Investments CEO Luke Rahbari said that although Nvidia’s quarterly revenue and earnings per share exceeded expectations, the stock price decline may be due to concerns that the company may not be able to achieve explosive growth this quarter. “Squawk Box Asia”.
Rahbari said the results were “very good,” but noted that “Nvidia has beaten analyst expectations in many quarters…one might think the runaway train is a little slow.”
He remains bullish on the company, stressing that “in my estimation, no company in the world is as dominant in its industry as NVIDIA.”
However, Nvidia’s gross margin fell to 75.1% from 78.4% in the previous period, while its “mid-70% range” annual gross margin forecast was lower than analysts’ expectations of 76.4%, according to StreetAccount.
Mark Lushcini, chief investment strategist at financial advisory firm Janney Montgomery Scott, told CNBC’s “Squawk Box Asia” that the drop in Nvidia’s stock price was a “rounding error,” noting how much Nvidia’s stock price has risen this year. Shares are up about 150% so far this year.
He noted, “The company is growing rapidly, but the growth rate has slowed for four consecutive quarters. For a company trading at 40-50 times forward earnings, that’s a high price to overcome compared to expectations. demand barriers.
About The Author
