NVIDIA NASDAQ:NVDA, a U.S. designer of processors used for artificial-intelligence computing, fell approximately 2.3% in Wednesday's regular-session trading as of 11:18 a.m. ET as investors assessed SK Hynix's disappointing earnings and continuing pressure across semiconductor stocks. SK Hynix (HXSCL), a South Korean memory-chip producer supplying NVIDIA, closed 9.6% lower after its record profit missed expectations. The Philadelphia Semiconductor Index declined 1.6% during morning trading.
SK Hynix's operating profit increased more than sixfold, supported by demand for advanced memory used in AI systems. However, shipment delays involving some advanced products limited price increases for its DRAM chips. The company disclosed approximately 10 long-term supply agreements, but analysts said the arrangements could restrict gains if memory prices continue rising. Investors were also disappointed by the absence of detailed plans for increasing shareholder returns.
NVIDIA's decline illustrates how investor attention has shifted from AI spending commitments toward evidence that infrastructure investment is producing sufficient financial returns. Reuters reported that investors were also concerned about intensifying competition from Chinese chipmakers and lower-cost AI models. Microsoft and Meta Platforms are scheduled to report after Wednesday's close, followed by Amazon and Apple later in the week. Their cloud growth, AI revenue and infrastructure-spending disclosures could influence whether pressure on NVIDIA and the broader semiconductor sector continues.