Semiconductors -5.40% Drop Shakes Market, How Will Korea Move Ahead of Nvidia Results?

IT and semiconductors down -5.40%, that was a meaningful drop.

The U.S. IT and semiconductor sector showed a large overnight decline.

Before the Korean open, attention is centered on 'AI semiconductors' ahead of Nvidia earnings.

Retail investor: "Will our chips fall together because of Nvidia earnings?"

That seems likely.

Macro sensitivity and sector linkage can transmit the shock.

How weak was the U.S. trigger? (Source: collected signals)

KOSPI: 6,742.74 (+0.68%) [2026-08-25 close]

KOSDAQ: 827.15 (+1.70%) [2026-08-25 close]

U.S. IT and semiconductors: -5.40% (recent sector move)

U.S. healthcare: +4.58%

(Note) The large overnight drop in IT and semiconductors raised sensitivity in Korea for related names.

Glossary → On-device AI: technology that runs AI processing on devices like smartphones.

Why do Nvidia results matter? (Source: collected signals)

Multiple reports note Nvidia news and imminent earnings.

(Note) Nvidia earnings are read as a demand signal for AI and can influence the whole semiconductor sector.

What about the Bitcoin and crypto rally? (Source: collected signals)

Multiple reports of Bitcoin and Ethereum 22% sharp rebounds.

ETF inflows observed for 6 consecutive days.

(Note) Risk appetite has partially returned, but this differs from the AI and semiconductor earnings-driven flows.

What should Korea watch?

Search spike keywords: AI semiconductor, defense, data center, obesity drugs.

Sectors show direct impact on semiconductors and IT from U.S. weakness.

(Note) Data center and AI demand related names, and battery/other cyclical stocks, may show differentiation.

Retail investor: "So what to check right away?"

First watch the earnings release time and futures/pre-market moves in related names.

Nvidia results can transmit both positive and negative reactions across the sector.

So, up or down

Downward pressure

• U.S. IT and semiconductors -5.40% - strong overnight fall, a psychological drag

• Nvidia earnings imminent - weak results could further weigh on the sector

• Many reports of semiconductor weakness - widening concern of trend change

Supportive factors

• KOSPI 6,742.74 +0.68% - showed relative strength the prior day

• KOSDAQ 827.15 +1.70% - showed strength in KOSDAQ the prior day

• Bitcoin and Ethereum rebound - sign of recovering demand for risk assets

This is for reference only.

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※ This article is for information only and not investment advice.

※ Investment decisions and responsibility lie with the investor.

※ Figures are as of the time of writing and may change.