(Bloomberg) — Asian semiconductor stocks fell after a disappointing outlook from major chipmaker Nvidia Inc dampened investor sentiment toward artificial intelligence deals.
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Among Nvidia's suppliers, shares in South Korean memory maker SK Hynix fell 6.8%, while Japanese tester maker Advantest's shares fell 3.6%. The Bloomberg Asia Pacific Semiconductor Index fell 1.6%. The American Depositary Receipts (ADA) of Taiwan Semiconductor Manufacturing Co. (TSMC), a major foundry, fell more than 4% in late trading.
“Nvidia had a strong performance, but the stock price fell on high expectations for next year,” said Jun Bei Liu, a portfolio manager at Sydney-based Tribeca Investment Partners. The stock's cooling after a strong performance this year “presents a buying opportunity as the long-term structural growth is intact,” he said.
Nvidia shares fell more than 8% in late trading on Tuesday after the company issued a revenue outlook that fell short of analysts' highest estimates and revealed production issues with new Blackwell chips. The announcement could add to concerns about an overheated rally in AI stocks that has sparked recent selling pressure and a return to less-favored areas of the stock market.
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