Nvidia<\/a>, has been one of the biggest beneficiaries of the AI spending boom, making its shares \u200cparticularly sensitive to shifts in investor \u2060sentiment toward the sector. <\/p>\nAnalysts said the selloff reflected a combination of concerns over AI infrastructure financing, China’s technological advances and rising competition from Chinese firms. <\/p>\n
Han Ji-young, \u2060an analyst at Kiwoom Securities, said reports that Chinese companies were developing domestic deep ultraviolet (DUV) lithography equipment had reignited concerns that Chinese memory makers could accelerate capacity expansion, intensifying competition in the global memory market. <\/p>\n
While details such \u200bas \u200bthe companies involved, equipment performance and commercialization timelines had \u200byet to be disclosed, the news had \u200ccooled investor sentiment as the investment narrative for semiconductor stocks had already weakened, he said. <\/p>\n
Han added that investors were also becoming increasingly cautious ahead of a string of earnings reports due later this week. <\/p>\n
“Despite stronger-than-expected earnings from Samsung Electronics earlier this month and Alphabet last week, semiconductor shares experienced sharp declines after the results,” he said. <\/p>\n
Separately, a Wall Street Journal report that Nvidia could provide a roughly $250 billion financial \u200cbackstop for an OpenAI data-centre project sent Nvidia shares \u200bdown nearly 5%, with investors questioning the extent to which \u200bthe AI chip leader may be financing its \u200bown customers. <\/p>\n
Further weighing on sentiment, the growing popularity of low-cost Chinese open-source AI \u200cmodels such as Kimi K3 raised questions \u200babout whether future AI workloads \u200bcould prove less intensive than previously expected \u2014 meaning less demand for advanced AI chips and HBM. <\/p>\n
Meanwhile, Chinese memory-chip maker CXMT’s strong stock-market debut fuelled concerns about intensifying competition in the global \u200bmemory industry. <\/p>\n","protected":false},"excerpt":{"rendered":"By Heekyong Yang SEOUL, July 28 (Reuters) – South Korean chip stocks slumped on Tuesday, with Samsung Electronics…\n","protected":false},"author":2,"featured_media":788559,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,144,10105,48799,35896,49643,194293,10260],"class_list":["post-788558","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-china","tag-competition","tag-earnings-reports","tag-investor-sentiment","tag-samsung-electronics","tag-semiconductor-stocks","tag-sk-hynix"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/788558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=788558"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/788558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/788559"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=788558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=788558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=788558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}