A broad decline in global technology shares has prompted Nvidia CEO Jensen Huang to characterize the recent selloff as an opportunity for investors, citing early-stage growth in artificial intelligence infrastructure.
The downturn—spurred by investor caution over AI-related valuations and concerns about potential U.S. interest rate increases—has weighed on semiconductor and tech stocks across key markets.
South Korea’s Kospi Index experienced notable losses on Monday as market participants scaled back exposures to AI-themed equities, contributing to a wider international pullback in technology shares. This drop followed U.S. tech sector declines last week, with mounting anxiety about sector overheating and potential rate hikes prompting the retreat.
Semiconductor companies faced broad selling pressure throughout last week. The downturn started when Broadcom posted quarterly results that failed to meet investor enthusiasm, causing a ripple effect across the industry. Nvidia, along with other chipmakers such as Advanced Micro Devices and Micron, experienced pullbacks after extended rallies, with some having recently reached record valuations.
Stocks that experienced the sharpest losses included those that had previously seen significant appreciation, such as Micron—whose market value recently topped $1 trillion—and Marvell, which had earlier surged after praise from Nvidia’s CEO.
Jensen Huang, when asked about the market movements, emphasized that the transition to an AI-driven future is still at an early phase, with significant infrastructure development yet to come. On the same day, Nvidia and SK Hynix announced a long-term partnership aimed at creating advanced memory chips for AI, intensifying competition in an area also targeted by Samsung Electronics. He reiterated his view that artificial intelligence will become essential infrastructure for the global economy, paralleling the pivotal role once played by the internet.
