Asian chipmaking stocks on edge before Nvidia Q4 earnings test
Investing.com-- Most major Asian chipmaking stocks moved in a flat-to-low range on Wednesday, tracking overnight declines in NVIDIA Corporation (NASDAQ:NVDA) as markets awaited more cues on an AI-driven boom from the chipmaker’s fourth-quarter earnings.
Nvidia wiped out about $100 billion in market capital on Tuesday, also seeing a measure of profit-taking as investors waited to see whether a massive earnings spike materialized as forecast by the chipmaker. The earnings will also potentially justify Nvidia’s sharp run-up in valuation over the past year.
Nvidia will report its fourth quarter earnings after the U.S. market close on Wednesday, and is expected to clock EPS of $4.58 on a revenue of $20.37 billion.
Anticipation of the earnings saw most Asian chipmaking stocks turn skittish on Wednesday. Japanese semiconductor testing equipment maker Advantest Corp. (TYO:6857) and TSMC (TW:2330) (NYSE:TSM)- the world’s largest contract chipmaker- fell 3.2% and 1%, respectively. Both firms are major suppliers to Nvidia, with Morgan Stanley analysts stating in a recent note that TSMC's shares could be used to take a position in Nvidia for its quarterly earnings.
South Korean memory chip maker SK Hynix Inc (KS:000660)- which is also poised to benefit from a boom in artificial intelligence development- rose 0.5% after briefly touching a record high this week, while its larger peer Samsung Electronics Co Ltd (KS:005930) fell 0.1%.
Japanese tech investment house SoftBank Group Corp. (TYO:9984) fell 2%, tracking an over 5% drop in the shares of its British chip designing unit Arm Holdings (NASDAQ:ARM), which had recently also seen a massive valuation spike on the back of AI hype.
Tokyo Electron Ltd. (TYO:8035), Japan's most
Read more on investing.com
