Despite Nvidia’s second-quarter revenue meeting initial expectations, it fell slightly short of market hopes, causing the Korean stock market to open lower. Disappointment from the U.S. stock market overnight also impacted domestic stocks, leading to a drop in shares of major semiconductor companies like SK Hynix and Samsung Electronics.
According to the Korea Exchange, the KOSPI index opened 1.21% lower at 2,657.18 on August 29. SK Hynix began trading at 124.98 USD, down 6.25%, while Samsung Electronics started at 52.33 USD, down 3.40%.
The decline is attributed to Nvidia’s Q2 performance, which, while surpassing its initial guidance and analysts’ consensus by exceeding $30 billion in revenue, failed to fully meet market expectations due to a margin drop for the first time in two years, dampening investor sentiment.
Eugene Investment & Securities researcher Lee Seung Woo commented, “Nvidia’s growth rate remains unmatched, but the problem is that investors’ expectations are even higher.” He added, “After the earnings release, the stock price seems to have continued to fall.”
Overnight in the U.S., the New York Stock Exchange also closed lower due to concerns over Nvidia’s earnings. The Dow Jones Industrial Average fell 159.08 points (0.39%) to close at 41,091.42, the S&P 500 dropped 33.62 points (0.60%) to 5,592.18, and the tech-heavy Nasdaq fell 198.79 points (1.12%) to 17,556.03. Nvidia’s stock also ended 2.10% lower.
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