Yahoo Finance’s Laura Bratton reports:
Chip stocks fell across the board early on Thursday after a Nvidia (NVDA) supplier made comments on its earnings call that indicated uncertainty about semiconductor demand this year.
South Korea-based SK Hynix (000660.KS) makes memory chips for Nvidia’s GPUs (graphics processing units), which are used in data centers to underpin artificial intelligence software.
After SK Hynix reported fourth quarter earnings that surpassed analysts’ expectations, its head of finance, Woo-Hyun Kim, painted a careful picture of the year ahead.
“2025’s memory demand outlook is clouded by inventory adjustments from PC and smartphone OEMs (original equipment manufacturers) as well as strengthened protective trade policies and geopolitical risks,” Kim said on a post-earnings conference call.
Following the comments, Nvidia shares sank as much as 2%. British chip designer Arm’s (ARM) stock dropped nearly 6%, and SK Hynix rival Micron (MU) shares fell roughly 4%.
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