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Investing.com — Asian tech stocks, especially heavyweight tech stocks with exposure to the artificial intelligence sector, track aftermarket losses after market darling Nvidia unveils new AI chip product line. It fell on Tuesday.
NVIDIA Corporation (NASDAQ:) announced its newest and most powerful AI chip product line, called Blackwell, at its annual developer conference on Monday. However, the AI giant's stock received little support from the announcement, falling nearly 2% in post-market trading.
Asian tech stocks, AI stocks track Nvidia losses
Nvidia's decline spills over into the Asian market as well as the Korean memory chip maker SK Hynix Co., Ltd. (KS:) has increased exposure to the AI industry and lost more than 5%.
peer Samsung Electronics Co., Ltd. (KS:) fell 1.1%.
Asian semiconductor manufacturing giant TSMC (TW:) (NYSE:) fell 0.3% in Taiwan trading. in Japan, Advantest Co., Ltd. (TYO:), a supplier to Nvidia, fell 2.3%, and SoftBank Group (TYO:), which has exposure to AI through its chip design division, fell 2.3%. arm Holdings (NASDAQ:) fell 0.8%.
It was not immediately clear why Nvidia and its peers' shares fell, but analysts said Blackwell's announcement was largely as expected.
Nvidia CEO Jensen Huang also gave little hint about the pricing of the new chips, which are expected to be a key component of the market favorite's earnings outlook through 2024.
Technology is prone to profit-taking due to weak risk appetite
There also appears to be an element of profit-taking in tech stocks, which have maintained very strong valuations after the big selloff of the past few months.
Ahead of a high-profile and historic policy shift, risk appetite declined and investors locked in some of their profits in the stock market.
The hype around artificial intelligence drove NVIDIA's valuation up more than 200% by 2023, making the chipmaker the third-largest publicly traded company on Wall Street.
Nvidia's rally spread to other tech stocks recognized for their exposure to the AI boom. However, these frothy valuations have made them susceptible to profit-taking.
