Key Points

• SoftBank Sinks Over 10%: A Nvidia-led selloff hit Asia’s chip complex, dragging down major suppliers like SK Hynix, Samsung, TSMC, and Foxconn in a broad AI hardware de-risking.
• Nvidia’s Rally Reverses: Despite a 62% revenue jump and strong guidance, Nvidia stock closed nearly 3% lower, signaling valuation fatigue even as the company denied “AI bubble” fears.
• Asia-Pacific Indices Tumble: The Nikkei 225 and Kospi dropped as stronger U.S. jobs data and firm Japanese inflation undercut rate-cut hopes.
• Europe Follows AI Reversal: European equities opened lower as chipmakers and defense stocks fell on AI-related volatility and Ukraine peace headlines.

Nvidia-Led Selloff Hits Asian Chip Complex

Asian semiconductor stocks sold off sharply after Nvidia’s overnight drop, despite the U.S. chipmaker’s strong results and upbeat guidance, underscoring how AI leaders have become focal points for broader risk-off moves. SoftBank tumbled over 10% in Tokyo, reflecting concerns around Arm and its wider AI exposure, while key Nvidia suppliers also slumped: SK Hynix fell 8.76%, Samsung Electronics 5.77%, TSMC 4.81% and Foxconn 4.86%. Smaller component and equipment names from Renesas to Tokyo Electron and Advantest also weakened, as investors reacted to tighter financial conditions, delayed Fed cut expectations and growing debate over a potential AI bubble.

Nvidia’s Post-Earnings Surge Fades as AI Rally Pauses

Nvidia’s shares reversed an early gain of up to 5% to close nearly 3% lower, despite delivering a 62% year-on-year jump in revenue to $57.01 billion and issuing stronger-than-expected fourth-quarter guidance. On the earnings call, CEO Jensen Huang pushed back against “AI bubble” concerns and management addressed key bear arguments around demand durability, supply constraints, financing and China, prompting many analysts to highlight the strength of the quarter even as some, like Deutsche Bank, kept a neutral stance. The initial optimism lifted AI-related names from AMD and Broadcom to power infrastructure stocks such as Eaton, but these gains also faded as the broader market turned risk-off.

Asia Equities Slide as AI Reversal and Rate Doubts Hit Risk Appetite

Asia-Pacific markets tracked Wall Street’s sharp reversal in AI-related stocks, with Japan’s Nikkei 225 down 2.4% and South Korea’s Kospi off 3.79% as tech heavyweights led the decline. SoftBank plunged over 10%, while names such as Advantest, Tokyo Electron, Samsung Electronics and SK Hynix saw losses of 5%–12%, reflecting a broad de-risking across the chip and tech complex. Stronger-than-expected U.S. jobs data cut the implied probability of a December Fed rate cut to around 40%, pressuring growth and duration-sensitive assets. Regional sentiment was further tested by firmer Japanese core inflation, which keeps the Bank of Japan under pressure to tighten policy.

European Stocks Slip as AI Volatility and Ukraine Peace Headlines Weigh on Sentiment

European equities opened lower, with the Stoxx 600 down around 0.75% as U.S. tech volatility and the global AI valuation reset continued to ripple across markets. Chip-linked names led declines, with BE Semiconductor, ASMI and ASML falling roughly 4–5% in early trade, mirroring the overnight selloff in Nvidia and the sharp pullback in Asian semiconductors. Defense stocks also came under pressure, with the Stoxx Europe Aerospace and Defense index off about 2.8% as reports of a possible Ukraine peace framework prompted profit-taking in names like Renk, Rheinmetall and Hensoldt. At the same time, investors are digesting a mixed U.S. nonfarm payrolls report and sharply reduced odds of a December Fed rate cut while awaiting fresh U.K. retail and euro area manufacturing data for further guidance on growth and policy.

Conclusion

Market price action over the past 24 hours reflects an AI trade that is still fundamentally supported by earnings, but increasingly vulnerable to valuation pressure, policy uncertainty and position crowding. Nvidia’s strong results were not enough to prevent a sharp reversal across global semiconductors, dragging Asian tech benchmarks and European chipmakers lower, while SoftBank’s double-digit decline underscored sensitivity to AI sentiment. Fading expectations for a near-term Fed cut and shifting headlines on Ukraine are feeding volatility. For investors, selectivity, liquidity awareness and disciplined risk management remain more important than directional AI or rate bets.

Investment Insights

• AI Exposure: Treat leading AI hardware names as core but volatile holdings; consider staggered entry points and defined risk limits rather than momentum-driven allocation.
• Regional Balance: The synchronized selloff across U.S., Asia and Europe argues for diversified exposure across regions and along the AI value chain (chips, software, infrastructure), rather than concentration in a few marquee stocks.
• Macro Sensitivity: Fading Fed cut expectations and firmer Japanese inflation show that AI valuations remain highly rate-sensitive; duration risk and equity risk should be managed together, not in isolation.
• Hedging & Liquidity: Elevated intraday reversals favor maintaining liquidity buffers and using hedges (volatility, defensives, quality balance sheets) instead of binary “all-in” AI or growth trades.

Economic Calendar

Date	Event	Why It Matters
November 21, 2025	U.S. Michigan Consumer Sentiment (Final), U.K. & Canada Retail Sales	Key read on U.S. household confidence and major retail sectors in the U.K. and Canada, shaping views on global consumption momentum and risk appetite.
November 26, 2025	U.S. Q3 GDP (Second Estimate), Durable Goods Orders, Personal Income & Spending / PCE	Combines growth, investment and the Fed’s preferred inflation gauge into one session, critical for recalibrating U.S. rate expectations and global risk premia.
November 27, 2025	Japan Tokyo CPI	A key leading indicator of Japanese inflation that guides Bank of Japan policy signals and influences yen dynamics and global bond markets.
November 28, 2025	German CPI & Retail Sales, Swiss GDP, Canadian GDP	Updates on eurozone core strength and Swiss/Canadian growth, important for gauging non-U.S. demand, ECB trajectory and cross-currency positioning.
November 30, 2025	China Official Manufacturing & Non-Manufacturing PMIs	High-frequency snapshot of Chinese activity that sets the tone for Asian equities, commodities, and global growth sentiment into December.