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Asian chip stocks sold off sharply on Nov 12: Taiwan's Taiex fell 2.63% as Nvidia's leadership crisis hit TSMC, while SK Hynix slipped 1.8% and Samsung rose.
- The Taiex closed down 2.63% at 43,091.87 as TSMC fell 2.3% and server makers Quanta and Wiwynn dropped more than 6%.
- SK Hynix lost 1.8% in Seoul, but Samsung Electronics gained 0.97%, so the sell-off was uneven.
- Nvidia's CEO resigned after the Asian close, and its shares fell as much as 13% at the US open before paring losses.
Lead
Asian technology stocks fell on Thursday, Nov 12, as turmoil at Nvidia (NVDA) pulled down the chipmakers and server builders that depend on it. Taiwan's Taiex closed 2.63% lower at 43,091.87, led by weakness in TSMC (TSM), which lost 2.3% to NT$2,340. The move hit AI stocks across the region. It came a week after a much larger rout on Nov 6, when worries about US data-center demand drove steep losses in Seoul, Tokyo and Taipei.
What Happened to Asian Chip Stocks on Nov 12?
Asian chip stocks fell because investors marked down the Nvidia supply chain after reports that the company's board was preparing to remove its chief executive. Those reports surfaced during the Asian trading day, and Nvidia shares had already fallen about 7% in after-hours trading in the US to near $161.
Taiwan took the heaviest blow. Server makers, which assemble Nvidia-based AI systems, were hit hardest. Quanta Computer dropped 6.5% and Wiwynn fell 6.6%.
In Japan, the Nikkei 225 fell 0.70% to 60,819.36. Advantest, a chip-testing equipment maker, lost 4.63%, and SoftBank Group fell 3.04%. The broader Topix index rose 0.20%, which shows the selling was concentrated in AI-linked names rather than the whole market.
Why Did SK Hynix and Samsung React Differently?
SK Hynix fell while Samsung rose because of how much each depends on Nvidia. SK Hynix (000660.KS) lost 1.8% to 1,254,000 won, as it sells a large share of its high-bandwidth memory to Nvidia for AI accelerators. Samsung Electronics (005930.KS) gained 0.97% to 208,000 won. Its revenue is more diversified across smartphones, displays and conventional memory.
The Kospi closed down 0.61% at 5,342.73. The pattern contrasts with Nov 6, when SK Hynix closed 10.4% lower and Samsung fell 6.4% in a sector-wide rout. Nvidia-specific uncertainty is hitting the closest suppliers harder than the whole chip sector.
How Did Nvidia's Resignation Change the Picture?
Nvidia's chief executive, Jensen Huang, announced his immediate resignation as CEO and board member on Thursday, after Asian markets had closed. The announcement followed reports about his personal conduct. Chief financial officer Colette Kress became interim CEO. Former Synopsys chief executive Harvey Jones was named the company's first board chair.
Nvidia shares fell as much as 13% to 14% at the US open, to about $149, roughly 35% below their Oct 6 record close. The stock then recovered much of the loss and traded down about 4% to 5%. Its market value hovered near $4 trillion, and the shares had fallen about 30% over the prior month.
The reaction on Wall Street was measured. The S&P 500 rose 0.10% to 7,626.98, the Dow gained 0.22% to 52,599.81, and the Nasdaq edged up 0.02% to 25,470.37. Rival AMD (AMD) climbed 5.32%. Micron Technology (MU) fell about 4%, and the Micron Technology stock decline matched the weakness in memory names in Asia. TSMC's US-listed shares lost more than 2%, Intel (INTC) fell 2%, and AI cloud provider CoreWeave (CRWV) dropped 10% in premarket trading.
Strategic Context
Nvidia sits at the center of the AI hardware chain. TSMC manufactures its processors, SK Hynix supplies the memory stacked beside them, and Taiwanese firms such as Quanta and Wiwynn build the servers. A change at the top raises questions about product roadmaps, customer commitments and export-license relationships, including with China, where US lawmakers have pressed for answers on shipments.
The timing adds pressure. The Taiex, Kospi and Nikkei have all been propelled by AI spending expectations, which left valuations and positioning stretched before the Nov 6 sell-off exposed how quickly leveraged holdings unwind.
What Comes Next for Nvidia-Linked Stocks?
The next test comes at Friday's Asian open, when Taiwan and Seoul will price in Nvidia's US recovery from its session low. The US recovery points to a smaller second-day decline than the first. Three things will set direction:
- The board's timetable and candidate list for a permanent chief executive.
- Whether Nvidia reaffirms its supply and product commitments to partners.
- Whether the data-center demand worries behind the Nov 6 rout stay contained.
Memory and equipment makers with heavy Nvidia exposure carry the most sensitivity to those answers. Diversified producers such as Samsung have shown more resilience.
Outlook
The Nov 12 session showed that the market treats Nvidia's governance as a supply-chain risk, not only a company matter. The Taiex fell 2.63% and TSMC fell 2.3%, while Samsung rose and the Topix gained, so the damage stayed concentrated in the closest Nvidia suppliers. The interim leadership structure and the search for a permanent CEO will drive the next phase for Asian AI hardware shares.
Mentioned tickers: NVDA, TSM, MU, AMD, INTC, CRWV, 000660.KS, 005930.KS
