Overnight, as the "artificial intelligence (AI) bubble" argument resurfaced, shares of Korea's large-cap semiconductor stocks Samsung Electronics and SK hynix were weak in early trading on the 21st.
As of 9:11 a.m. that day, SK hynix was down 48,000 won (8.41%) from the previous session at 523,000 won. At the same time, Samsung Electronics was trading at 96,400 won, down 4.17%.
Despite Nvidia's strong third-quarter results the previous day, accounts receivable have increased more than expected, raising concerns about the profitability of hyperscalers (large-scale data center operators). If the profitability of these customers is not secured, it could affect Nvidia's future sales.
In addition, Federal Reserve (Fed) Governor Lisa Cook's warning about the risk of price declines in financial assets that have risen sharply recently also heightened concerns about AI overvaluation. On the 20th (local time), in a lecture at Georgetown University, she said, "My current impression is that the likelihood of a decline in overvalued asset prices has increased." Nvidia accordingly closed down 3.15% the previous day.