Asia stocks open on the negative side, tracing their US peers after underwhelming quarterly earnings from Nvidia Corp. 

South Korea’s Kospi Index slid more than 1% as chipmakers SK Hynix Inc. and Samsung Electronics Co. were trading in the red. Futures on the Nasdaq 100 index were also down 1% in Asia as Nvidia crashed more than 8% in post-market trading, and sales forecasts disappointed Wall Street. 

Nvidia’s outlook has the potential to temper the intense excitement surrounding AI that has catapulted the company to become the second-most-valuable globally. 

As the primary beneficiary of the rush to upgrade data centres to accommodate AI software, Nvidia’s sales forecasts are closely watched as indicators of this spending boom. Any changes in their outlook could significantly impact the broader AI investment landscape, which has heavily relied on Nvidia’s performance as a benchmark.

While Nvidia’s guidance underwhelmed, revenue more than doubled to $30 billion during the quarter.

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