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NVIDIA headquarters building located in Santa Clara, California, USA. /Photo: Reuters=News1. /Photo=(Santa Clara Reuters=News1) Im Yeoik reporter,
, ‘Disappointment over NVIDIA’s performance has hit domestic semiconductor stocks. Samsung Electronics, SK Hynix, and Hanmi Semiconductor are all tumbling in response to the negative news from NVIDIA. While NVIDIA has maintained stable performance growth, analysts say it fell short of meeting the heightened expectations of investors. Concerns over the overall semiconductor market could lead to significant repercussions.’,
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, Samsung, Hynix, and Hanmi Semiconductor all see declines,
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, ‘end_block’, ‘On the 29th, as of 9:56 AM on the KOSPI, Samsung Electronics is trading at 74,400 won, down 2.62% (2,000 won) from the previous day. It initially dropped by over 3% at the beginning of trading but then stabilized.’,
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, ‘SK Hynix is down 4.68% (8,400 won) at 179,000 won, and Hanmi Semiconductor is down 7.49% (9,200 won) at 113,600 won. Alongside these companies, most stocks in the semiconductor and semiconductor equipment sectors are showing declines.’,
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, ‘The previous day, Samsung Electronics, SK Hynix, and Hanmi Semiconductor all closed higher on expectations of positive results from NVIDIA. However, sentiment shifted after the results were announced, leading to strong selling pressure.’,
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, ‘NVIDIA announced its second-quarter (May-July) results early in the day. It recorded revenue of $30.04 billion and adjusted earnings per share (EPS) of $0.68, representing 15% and 12% increases, respectively, from the previous quarter. These figures exceeded market consensus of $28.7 billion in revenue and adjusted EPS of $0.64. Although the gross profit margin (GPM) fell by 3.2 points from the previous quarter to 75.7%, it still met expectations.’,
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, ‘NVIDIA also revealed plans to repurchase $5 billion worth of its own shares. For the third quarter, it provided revenue guidance of $32.5 billion and a GPM of 74.5-75.5%. Recognizing the design changes in the next-generation AI accelerator Blackwell, NVIDIA stated that it could recognize revenues of tens of billions of dollars in production starting in the fourth quarter of this year.’,
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, Investor disappointment escalates despite positive results, concerns remain over Blackwell,
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Jensen Huang, CEO of NVIDIA, unveiling the next-generation graphics processing unit Blackwell (B200) targeting generative AI models at NVIDIA’s annual developer conference ‘GTC 2024’ in San Jose, California, USA on March 18, 2024. /Photo: AFPBBNews=News1. /Photo=(San Jose AFP=News1) Kim Sung-sik reporter,
, ‘Investors who anticipated explosive growth were not satisfied with NVIDIA’s performance this time. There are doubts about overcoming concerns about the design flaws of Blackwell and possible delays in its launch. Some are worried that Blackwell may contribute less to earnings this year than originally expected. Following a 2.1% decline during regular trading hours, NVIDIA dropped by 6.89% in after-hours trading, breaking below $120.’,
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, ‘KB Securities analyst Kim Il-hyeok said, regarding the scale of share repurchases, “Considering that the profit in the previous four quarters was $53 billion, NVIDIA is not projecting strong profit growth as it did before.” He remarked, “While demand for AI is strong, what’s important from a market perspective is the growth rate.” He added, “Although there will continue to be significant demand, changes to enhance GPU efficiency, such as the increased utilization of mid-sized LLMs (large language models), are expected to moderate the growth rate of GPU demand.”‘,
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, ‘Shinhan Investment Corporation analyst Park Sang-wook stated, “The profit contribution from the Blackwell launch is expected to be low. There is also a risk that profitability could be compromised by the effects of new product launches.” He said, “NVIDIA’s annual GPM consensus is 76%. To meet market expectations, the fourth-quarter GPM should be recorded at 76.4%.” He further commented, “The outlook for the second half of the year fell short of meeting the heightened expectations of investors.”‘,
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, ‘Some believe that the disappointment over NVIDIA’s performance will not change the memory semiconductor market. Daol Investment Securities analyst Ko Young-min said, “Considering the tight supply situation of the latest generation HBM (High Bandwidth Memory), the HBM shipping fluctuations are expected to be limited.” He stated, “Expansion of HBM shipments by domestic manufacturers is expected to proceed as planned, despite concerns. Based on strong AI demand, a strategy focusing on solid stocks with a clear direction for third quarter and 2025 earnings amid concerns is effective.”‘,
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