Asian technology stocks experienced a sharp decline following a report from research firm SemiAnalysis indicating that Nvidia's next-generation AI server rack system, Kyber NVL144, has been delayed by over a year. The delay is attributed to difficulties in manufacturing printed circuit boards for the platform. This news hit an already anxious investor base, with even minor setbacks triggering substantial sell-offs after a prolonged rally in AI-related stocks. Nvidia did not comment on the report outside of regular business hours.
The impact was widespread among Nvidia's Asian suppliers. Japan's Ibiden, a prominent PCB maker and Nvidia's largest client, saw its stock drop by as much as 10%. Other companies affected included Hong Kong-listed Kingboard Laminates Holdings, which tumbled 18%, Taiwan's Elite Material, which fell 10%, and South Korea's Samsung Electro-Mechanics, which slid 11%. These declines occurred despite considerable prior growth, with Samsung Electro-Mechanics having surged over 600% and Kingboard Laminates more than 470% this year alone.
Analysts weighed in on the market reaction. Shawn Oh, head of Korea cash equities at NH Investment & Securities, noted that the report led to "weakness across regional tech" and raised uncertainties regarding Nvidia's future AI expansion plans, potentially creating opportunities for competing AI platforms. Gary Tan, a portfolio manager at Allspring Global Investments, suggested that while the Kyber delay doesn't necessarily imply a reduction in overall AI capital expenditure, it indicates that Nvidia's most ambitious next-gen system architecture might take longer to deploy, which he found unsurprising.
