GoKawiilThe logo of Japanese company SoftBank Group is seen outside the company's headquarters in Tokyo on January 22, 2025.
SoftBank is also involved in a number of AI ventures that use Nvidia's technology, including the $500 billion Stargate project for data centers in the U.S.
SoftBank plunged more than 10% in Tokyo. The Japanese tech conglomerate recently offloaded its Nvidia shares but still controls British semiconductor company Arm , which supplies Nvidia with chip architecture and designs.
A sector-wide pullback hit Asian chip stocks Friday, led by a steep decline in SoftBank , after Nvidia 's sharp drop overnight defied its stronger-than-expected earnings and bullish outlook.
South Korea's SK Hynix fell nearly 10%. The memory chip maker is Nvidia's top supplier of high-bandwidth memory used in AI applications. Samsung Electronics , a rival that also supplies Nvidia with memory, fell over 5%.
Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker and manufacturer of Nvidia's chip designs, was down over 4% in Taipei.
Taiwan's Hon Hai Precision Industry , also known as Foxconn, which manufactures server racks designed for AI workloads, dipped 4.86%.
The retreat in major Asian semiconductor giants comes after Nvidia fell over 3% in the U.S. on Thursday, despite beating Wall Street expectations in its third-quarter earnings the night before.
The company also provided stronger-than-expected fourth-quarter sales guidance, which analysts said could lift earnings expectations across the sector.
Billy Toh, regional head of retail research at CGS International Securities Singapore, said Nvidia was a victim of a combination of a Bitcoin selloff, the possibility of a delayed Fed rate cut and generally tighter financial conditions.
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