Nvidia results lead to a drop in Tech stocks across Asia.

• Companies with direct links to the U.S. tech giant experienced the most significant losses, including South Korean chipmakers SK Hynix and Samsung Electronics, as well as Taiwanese heavyweights TSMC and Foxconn.
• Although to a lesser extent, the spillover from the tech stock market in Hong Kong and Japan also affected other tech stocks.

On Thursday, the stock prices of technology and chip-related companies in Asia decreased, following the release of Nvidia's second-quarter financial report, which was negatively impacted by a broader decline in the region's major markets.

Companies with direct links to the U.S. tech giant, such as South Korean chipmakers SK Hynix and Samsung Electronics, experienced the most significant losses.

Nvidia's high bandwidth memory chip manufacturer, SK Hynix, experienced a 6.74% decline in share prices.

The highest weighted stock on South Korea's benchmark, Samsung Electronics, experienced a decline of up to 3.8%.

According to Reuters, it is expected that Samsung will be manufacturing HBM chips for some Nvidia products, although the full extent of their supplier relationship with Nvidia is not yet known.

Nvidia's competitors, including Foxconn, experienced losses of up to 2.96%.

Japanese semiconductor related stocks, including , and , experienced a decline of up to 3.2%, 3.6%, and 3.49% respectively, as the spillover from the broader tech stock market affected them to a lesser extent.

Despite being largely unrelated to the Nvidia value chain, Chinese chipmakers listed in Hong Kong, including those that are partially state-owned, experienced a decline in their stock prices. Specifically, Hua Hong Semiconductor fell by 1.66%, while the partially state-owned company lost about 1.4%.

Runaway train slowing down

Despite Nvidia's quarterly revenue and earnings per share exceeding estimates, a decline in shares may have been caused by concerns about the company's ability to maintain rapid growth in the current quarter, as stated by Luke Rahbari, CEO of Equity Armor Investments on CNBC's "Squawk Box Asia."

Nvidia has consistently exceeded analyst expectations for many quarters, but Rahbari believes that the company's growth may be slowing down.

Despite his optimism, he emphasizes that no other company in the world, in his opinion, has the same level of dominance in their industry as Nvidia.

While Nvidia's gross margin slipped to 75.1% from 78.4% in the prior period, its annual gross margin forecast of "mid-70% range" was below analysts' estimate of 76.4%, according to StreetAccount.

Mark Lushcini, chief investment strategist at Janney Montgomery Scott, stated on CNBC's "Squawk Box Asia" that the decline in Nvidia shares is a "rounding error," considering the significant increase in the company's stock price this year, which has risen approximately 150%.

The company's growth rate has slowed down for four consecutive quarters, despite its rapid expansion. This presents a significant challenge for the company, which is currently trading on a 40-50 times forward earnings ratio, exceeding expectations.