Asian Markets Reel After Nvidia Earnings Trigger Global Tech Selloff

Asia Hit by Nvidia Shock

Asian markets reel after Nvidia earnings trigger global tech selloff, a stark reminder of how central the U.S. chip giant has become to global financial sentiment. Nvidia delivered quarterly results that crushed forecasts and unveiled a record $60 billion buyback, but its cautious forward guidance sparked a sharp reversal across Asia’s technology sector.

Regional Fallout

The reaction rippled quickly across regional markets:

• South Korea: Samsung Electronics and SK Hynix lost ground as traders pared back AI-driven bets.
• Taiwan: TSMC, a linchpin of the global semiconductor supply chain, slipped, dragging the Taiex lower.
• Hong Kong: Tech-heavy benchmarks fell, deepening losses in the Hang Seng.

The MSCI Asia-Pacific ex-Japan index dipped 0.2%, reflecting how Nvidia’s results reverberated beyond Wall Street into global markets.

Why Weak Guidance Shook Investors

Despite smashing expectations, Nvidia’s outlook raised red flags that unsettled investors:

• Data center growth came in softer than expected.
• Supply bottlenecks risk capping future shipments.
• Rising competition from AMD and China’s Cambricon is intensifying.

For many investors, the message was clear: Nvidia earnings were spectacular, but the guidance triggered doubts about whether AI valuations can continue at their current pace.

Global Market Ripples

The shockwaves stretched well beyond Asia. Nasdaq futures dipped, European tech shares looked wobbly at open, and analysts warned that sentiment across the AI trade may cool if Nvidia no longer looks unstoppable.

At the same time, defensive plays—from energy to utilities—drew fresh inflows as investors hedged against tech volatility. Safe-haven demand for the dollar and U.S. Treasuries also ticked higher.

The Bigger Picture

With a market cap above $3 trillion, Nvidia has become the bellwether for the AI revolution. The fact that its earnings triggered a global tech selloff shows how fragile investor psychology has become at these valuations.

As one strategist in Seoul put it: “If Nvidia can’t meet the hype, the risk isn’t just for one company—it’s for the entire AI trade worldwide.”