Shares of Asian printed circuit board (PCB) board makers tumbled on news that Nvidia's next-generation artificial intelligence (AI) server rack architecture will be delayed by more than a year due to manufacturing difficulties. SemiAnalysis, a research organization, published an article on the X platform stating that Nvidia’s Kyber NVL144 architecture system has encountered setbacks in the PCB manufacturing process.
An Nvidia spokesperson responded with a written statement saying, "Our roadmap has not changed."
The news that the AI server architecture is delayed has intensified the market's cautious sentiment towards technology stocks. After years of gains driven by artificial intelligence, technology sector valuations have risen significantly. At the same time, as debt levels rise, so do concerns about the sustainability of the massive capital spending underpinning the AI boom.
The stock price of Japanese PCB manufacturer Iphiden, one of Nvidia's largest suppliers, fell as much as 10% on Monday. Among related supply chain companies, Kingboard Laminated Board once plunged 18% in the Hong Kong market; Taiwan Optoelectronics fell 10%; South Korea's Samsung Electro-Mechanics once fell 11%.
South Korea NH Investment & Securities Co. Shawn Oh, head of equities, said SemiAnalysis' report triggered widespread weakness in regional technology stocks on Monday. He believes that the news that Kyber NVL144 may be delayed, as well as other issues mentioned in the report, "increases market uncertainty about NVIDIA's next-generation large-scale expansion roadmap and also creates a larger competitive window for other AI platforms."
The sharp fall in related stocks shows that after a long period of rise in AI concept stocks, investors are very sensitive to any potential bad news. Samsung Electro-Mechanics' cumulative growth during the year has exceeded 600%, and Kingboard's laminate board prices have also risen by more than 470%.
