Semiconductor stocks, Nvidia fall amid SK Hynix warning
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The news: Chip stocks including Nvidia, were falling on Thursday (Friday AEDT) after South Korean memory-chip maker SK Hynix warned of sluggish demand, despite the sector’s prospects linked to Donald Trump’s USD500 billion Stargate AI initiative.
The numbers: Nvidia shares were over 2% lower after a record profit report from supplier SK Hynix failed to impress investors, as it warned of slowing demand for smartphones and said a potential slowdown in AI spending could weigh on demand for its products.
SK Hynix shares dropped 2.6%, Advanced Micro Devices fell as much as 2%, Broadcom was down 1.9% and Micron Technology dropped as much as 4.89%.
The context: A day earlier, Nvidia had seen a 4.4% rise amid a broad AI stock rally fuelled by the announcement of the USD500 billion Stargate Project partnership between the White House, Oracle, OpenAI and SoftBank.
Despite concerns over delays in its Blackwell GPU rollout, analysts estimate that between 25% and 50% of Stargate’s investment could be spent on advanced chips, a market Nvidia dominates.
