NVIDIA shares dropped approximately 4% during a widespread semiconductor selloff. A South Korean report triggered the decline, stating key supplier SK Hynix plans to slow high-bandwidth memory (HBM) production expansion.
HBM serves as a critical component in NVIDIA’s advanced AI processors. This news fueled investor concerns regarding a potential slowdown across the AI hardware sector.
The selloff began in South Korea as SK Hynix and Samsung shares fell sharply. The downward trend subsequently impacted U.S. chip stocks.
Reports suggest SK Hynix prioritized higher profit margins in conventional DRAM over AI-related demand.