The Korean stock market began to decline on the 29th as the leading AI industry company, Nvidia, saw a drop in its stock price. The KOSPI opened at 2,657.18, down 32.65 points (1.21%) from the previous trading day, in the midst of dealers working in the dealing room of Hana Bank in Jung-gu, Seoul.
Following the trend in the New York stock market, the KOSPI also showed volatility, despite Nvidia exceeding market expectations in its second-quarter revenue. Investors were disappointed as Nvidia’s stock price fell, impacting the domestic stock market. Even though Nvidia’s CEO, Jensen Huang, addressed concerns about production delays of the upcoming next-generation AI chip ‘Blackwell’, the stock price failed to satisfy heightened market expectations.
After the market closed on the same day, Nvidia announced second-quarter revenue of $30 billion and net income of $16.6 billion, representing a 122% and 168% increase, respectively, from the same period last year. Despite surpassing market expectations of $28.7 billion for revenue, Nvidia’s stock price dropped by 2.10%. The concerns surrounding the production delay of ‘Blackwell’ and the slightly lower-than-expected gross profit margin projection for the third quarter contributed to the decline in Nvidia’s stock price. However, the CFO of Nvidia, Colette Kress, stated that they expect ‘Blackwell’ to generate sales of billions of dollars in the fourth quarter. Nvidia also announced a $50 billion share repurchase plan and a cash dividend of $0.01 per share, but these announcements did not fully satisfy the market.
The impact of Nvidia’s stock price decline was evident in the Korean market, with the KOSPI starting at 2,657.18 and slightly rising to 2,668.31 by 10 a.m. Semiconductor stocks closely tied to Nvidia also experienced significant declines, with SK Hynix down 4.91% at 175,000 won and Samsung Electronics down 2.61% at 74,400 won during the same period.