U.S. artificial intelligence (AI) corporations Nvidia reported disappointing earnings compared to market expectations, causing domestic semiconductor stocks to show weakness on the 28th.
According to the Korea Exchange, as of 9:30 a.m. on this day, South Korea's semiconductor leader Samsung Electronics was trading at 70,100 won, down 500 won (0.71%) from the previous trading day. The preferred stock Samsung Electronics preferred also fell 100 won (0.17%) to 57,600 won.
At the same time, SK hynix was trading at 259,000 won, down 1,000 won (0.38%) from the previous trading day. It had fallen over 1% at the beginning of the session.
This appears to show that although Nvidia reported good earnings overnight, the analysis indicating that it fell short of market expectations has dampened investor sentiment towards semiconductor stocks.
Nvidia announced on the 27th (local time) that it recorded a second-quarter revenue of $46.74 billion and earnings per share (EPS) of $1.05. While this exceeded market expectations, concerns arose over sluggish revenue in the institutional sector of the data center business, causing Nvidia's stock to drop 3.1% in after-hours trading.
Lee Seong-hoon, a researcher at Kiwoom Securities, noted, "It appears that profit-taking sales emerged immediately after the earnings report due to the heightened market expectations," adding, "The domestic stock market is expected to reveal the impact of Nvidia's earnings, showing weakness primarily in semiconductor and AI-related stocks."