NVIDIA's financial report "fails to satisfy the public," compounded with worries over tariffs, results in a steep decline in Asian chip stocks.

NVIDIA Corporation's financial report did not receive market recognition, and the shadow of potential tariffs in the United States loomed over it. Asian chip stocks suffered a heavy blow, with Japan's tech-focused Nikkei average index falling to its lowest level since September of last year. Bloomberg tracked the index of 25 Japanese chip concept stocks, which dropped by 4.5% at one point, marking the largest intraday decline since September of last year. Disco led the decline with a 12% drop; Advantest Corp fell by up to 10%, and Tokyo Electron fell by up to 5.5%. In South Korea, SK Hynix and Samsung Electronics' stocks fell by 4.8% and 2.3% respectively. The stock market in Taiwan was closed for the holidays. In mainland China, the supplier of NVIDIA Corporation, Foxconn Industrial Internet, saw its stock price drop by 4.3%, while Sunny Optical, listed on the Hong Kong stock market, fell by 5.64%. NVIDIA Corporation, a chip manufacturer at the core of the artificial intelligence (AI) investment boom, fell by 8.5% in the US stock market. Prior to this, the company warned that the gross profit margin would be lower than expected. NVIDIA Corporation stated that its quarterly revenue was around $43 billion, slightly higher than analysts' expectations. Although the financial report was released on Thursday morning in Asia, investors in the region did not have a chance to react to NVIDIA Corporation's overall stock trend until Friday. Mitsuhiro Shibata, a senior strategist at Daiwa Securities, said, "Currently, everyone is concerned about investments in the field of artificial intelligence. While NVIDIA Corporation's financial report met expectations, it did not dispel these concerns." US President Donald Trump announced that the 25% tariffs on imports from Canada and Mexico will be officially implemented next week. He also stated that an additional 10% tariff will be imposed on Chinese imports, exacerbating market pessimism. Yoshiki Nagata, a senior portfolio manager at Meiji Yasuda Asset Management, said, "Compared to a month ago, the expectation that Trump will eventually compromise has decreased." As a result, the Japanese Nikkei index fell by more than 3%, dropping to its lowest level since September 19th of last year.