Stocks Fall as Nvidia, China Earnings Let Down – Asia Market Wrap
Asia’s stocks fell as Nvidia’s earnings failed to excite investors, and China’s results contributed to a selloff in the nation’s tech businesses.
Taiwan Semiconductor and SK Hynix Futures, two chipmakers, led the MSCI Asia-Pacific gauge’s 0.6% loss. The Nasdaq 100 Index had a 0.8% decline in Asia. Following a sales forecast that fell short of even the highest analyst predictions, Nvidia’s stock fell more than 8% in post-market trade.
The prognosis poses a challenge to the AI craze that has sent global tech markets higher for most of the year. A race to modernise data centres so they can handle AI software has benefited Nvidia greatly, and the company’s sales projections are now used as a gauge for this surge in spending. Benchmarks for Chinese equities declined as weak profits highlighted weak consumer demand in the second-largest economy in the world.