Nvidia's slowing revenue growth concerns investors, causing a slump in Asian chip stocks.

• On Thursday, Asian semiconductor-related stocks mostly declined after Nvidia announced an earnings forecast that did not meet the high expectations of certain investors.
• Despite Nvidia's third-quarter results surpassing analysts' expectations and its positive outlook for the current quarter, its shares dropped 2.5% in extended trading to approximately $142.20 each.
• "If the guide is not of the highest quality, you will likely experience selling pressure, according to Daniel Newman, CEO of the Futurum Group, who shared this insight on CNBC's "Squawk Box Asia.""

On Thursday, Asian semiconductor-related stocks mostly declined after Nvidia announced an earnings forecast that did not meet the high expectations of certain investors.

Despite Nvidia's third-quarter results surpassing analysts' expectations and its positive outlook for the current quarter, its shares dropped 2.5% in extended trading to approximately $142.20 each.

If the guide is not up to par, you will likely experience selling pressure, according to Daniel Newman, CEO of the Futurum Group, who made this statement on CNBC's "Squawk Box Asia" after the report.

The decline in sentiment has affected the performance of Nvidia suppliers and other chip companies in Asia, causing their stocks to fall.

Selloff in Asia

On Thursday, the largest chip loser on Japan's benchmark Nikkei 225 was a semiconductor testing equipment supplier that counts Nvidia among its clients, experiencing a decline of up to 5.6%.

Softbank Group, a Japanese technology conglomerate that owns a stake in chip designer Arm, which provides circuit designs called architecture to Nvidia, experienced a decline in its shares by over 1.5%.

Nvidia's high-performance graphics processing units experienced a slip of up to 1.5%.

, known internationally as Foxconn, was down as much as 1.9%.

Nvidia has designated the company as a crucial supplier and is constructing the world's largest manufacturing facility in Mexico for assembling GB200 superchips, a vital component of its upcoming Blackwell family computing platform.

In South Korea, SK Hynix began the day with gains before trading around 2% lower. The company provides high-bandwidth memory chips to Nvidia for its AI applications.

Despite the trend, Samsung Electronics gained 0.9% and was reportedly in the process of obtaining certification to provide its advanced HBM chips to Nvidia.

Conservative guidance

In the quarter ending October 27, Nvidia's revenue increased by 94% compared to the same period last year, reaching $35.08 billion. This was higher than analysts' expectations of $33.16 billion. However, this represented a slowdown from the previous three quarters, where sales rose by 122%, 262%, and 265%, respectively.

The net income during the quarter increased by 109% compared to the previous year, reaching $19.3 billion.

The leading AI chip manufacturer anticipates $37.5 billion in revenue for the current quarter, which is slightly above analysts' expectations of $37.08 billion. However, this growth rate of approximately 70% is a significant decrease from the 265% annual growth recorded in the same period last year.

Nvidia has impressed Wall Street as the main beneficiary of the ongoing AI boom, with major customers like Microsoft, Alphabet, Amazon, and Meta Platforms increasing their AI-related investments, as stated in their earnings reports.

Nvidia is in a good position because none of the other companies will fall behind in terms of AI technology.

This year, Nvidia's value has nearly tripled, making it the world's most valuable publicly-traded company.