Nvidia’s (NVDA) latest earnings report for the quarter ended June fell short of market expectations despite positive revenue growth, extending disappointment in the tech market. The Asian suppliers of the chipmaker were the worst impacted.
The tech-heavy ICE Asia Tech 30 Index dipped. Meanwhile, tech stocks in the United States, AI and data token tokens remained weak during the day.
Asian stocks worst hit after NVIDIA earnings report
Nvidia (NVDA) stocks extended market disappointment with its less-than-stellar Q2 earnings. The AI chipmaker’s 122% increase in revenue failed to meet the 200% rise set in the previous 3 quarters. The broader tech market in Asia has also been trading in the red with the ICE Asia Tech 30 Index down by 3 points at press time.
The main stocks to experience a decline were Nvidia suppliers in Asia.
SK Hynix, a South Korean chipmaker, was down at least 5% during Asian opening hours as per CNBC. SK Hynix is known to produce HBM chips for Nvidia’s AI applications. Samsung Electronics, another South Korean supplier to Nvidia, fell by over 3%. Taiwan Semiconductor Manufacturing Company (TSMC) fell by at least 2%. Hon Hai Precision Industry (Foxconn) also witnessed a marginal decline, with other stocks following the same trend.
South Korean and Taiwanese indexes were reportedly the worst impacted.
Nvidia again had fabulous results and is trading down pre market.
The results in February were also fabulous, and the stock traded down in the morning.
It finished up.
Cisco, back in the day, had fabulous results, traded down and stayed down.
That was the top. Not just for… https://t.co/HiGvfyJing
— John_Hempton (@John_Hempton) August 29, 2024
AI tokens have reversed their rally
According to research by trading firm QCP Capital, Nvidia’s strong earnings have had a “sell the news” response on crypto. The market cap of artificial intelligence (AI) tokens is down 2% on CoinGecko. They were hovering at a cumulative cap of $23.7 billion at press time.
NEAR, the top token in the sector, is down around 2% in the last 24 hours. While ICP has gained, FET has lost close to 6% at the time of writing during the same time frame. RENDER lost another 5% and TAO is down 6% in value.
In the run-up to the Nvidia earnings report, AI and big data center tokens were surging. The rally faded into a decline as the results were not good enough for Wall Street. The overall market cap of cryptocurrencies has been steady above $2 trillion, with BTC racing up to the $60K mark.
Bitfinex analysts recently pointed out a stronger correlation between Bitcoin and the US stock market. At the time of writing, the NASDAQ 100 Technology Sector Index is also showing weakness. Based on Google Finance data, the index has dropped by 160.82 points, which is a decrease of 1.56% for the day.
