Tech weighs on Asian markets after Nvidia results

HONG KONG: A sell-off in tech firms dragged Asian markets down on Thursday (Aug 29) after investors were left disappointed by earnings from chip titan Nvidia that stoked concerns about the outlook for all things artificial intelligence.
While the report beat expectations in many areas, it took the wind out of the sails for traders, who had been enjoying a run-up on the prospect of US interest rates coming down from next month.
Investors had been keenly awaiting the release from California-based Nvidia, which has become a bellwether for the tech sector owing to its huge role in the development of AI chips.
Analysts had warned ahead of the event that even a forecast-busting reading might not be enough to satisfy markets, which have grown used to outsized profits and revenues.
Nvidia’s share price is up about 160 per cent year-to-date, and has accounted for a third of the broad-based S&P 500 index’s gains this year.
The firm – now with a market capitalisation of more than US$3 trillion – said revenue and profits more than doubled in the fiscal second quarter, while it also announced an extra US$50 billion in stock buybacks.
However, the growth in sales was slower than the furious pace seen in previous quarters.