SoftBank sinks over 10% as Nvidia-fueled rout sweeps Asian chip names

The industry-wide decline hit Asian chip stocks on Friday. SoftBankafter NvidiaThe sharp decline overnight challenged the stronger-than-expected earnings and bullish outlook.

SoftBank lost more than 10% in Tokyo. The Japanese tech conglomerate recently spun off its Nvidia shares but still controls British semiconductor company Arm, which provides chip architecture and designs to Nvidia.

SoftBank is also involved in a number of AI initiatives using Nvidia’s technology, including the $500 billion Stargate project for data centers in the United States.

In South Korea, SK Hynix fell almost 10%. The memory chip maker is Nvidia’s top supplier of high-bandwidth memory used in AI applications. Samsung ElectronicsNvidia’s memory supplier fell more than 5%.

Taiwan Semiconductor Manufacturing Company, It lost more than 4% in Taipei, the world’s largest contract chip maker and maker of Nvidia chip designs.

Taiwan’s Hon Hai Precision IndustryAlso known as Foxconn, which produces server racks designed for AI workloads.

The decline in Asia’s leading semiconductor giants comes after Nvidia fell more than 3% in the US on Thursday, despite beating Wall Street expectations on third-quarter earnings the night before.

The company also provided stronger-than-expected fourth-quarter sales guidance, which analysts said could boost earnings expectations across the industry.

But smaller chip players in Asia were not spared either.

Renesas Electronics, a major Nvidia supplier in Tokyo, fell 2.3%. Shares of Tokyo Electron, which provides basic chipmaking equipment to the foundries that produce Nvidia’s chips, fell 5.32%.

Another Japanese chip equipment manufacturer, Lasertec, lost over 3.5%.