(Updates prices as of 0230 GMT)

By Kevin Buckland

TOKYO, Aug 29 (Reuters) - Japan's Nikkei share average

slipped on Thursday, as technology stocks fell after artificial

intelligence (AI) darling Nvidia's ( NVDA ) forecasts failed to impress

some growth-hungry investors.

The Nikkei was down 0.39% at 38,220.34 by the midday

recess after falling as much as 1.12% earlier in the day.

Chip-testing equipment maker Advantest ( ADTTF ), a supplier

to Nvidia ( NVDA ), declined 0.52%, while chip-making equipment

giant Tokyo Electron ( TOELF ) slid 1.11%. AI-focussed startup

investor SoftBank Group dropped 2.31%.

The broader Topix was off 0.29%, with a sub-index of

growth shares skidding 0.36% versus a 0.22% decline for

value stocks.

"Nvidia's ( NVDA ) earnings and sales forecasts topped estimates, but

not by the extent required to meet the lofty expectations of

some in the market," said Maki Sawada, an equities strategist at

Nomura Securities.

"But it was another positive set of results from Nvidia ( NVDA ), and

I don't think selling is going to continue for very long."

On top of the moves in Japanese shares, investors also need

to keep an eye on the direction of U.S. stock futures, she said.

Futures for the tech-heavy Nasdaq were down 0.88% as

of 0230 GMT.

Electronic component maker Nidec ( NNDNF ) was the Nikkei's

biggest decliner, slumping more than 4% after U.S. server

manufacturer Super Micro Computer ( SMCI ) - with which it is

building water-cooling modules for servers - delayed the filing

of its annual report, sending its shares tumbling 25%.

At the other end, insurers were the top

performers among the Tokyo Stock Exchange's 33 industry groups

with a 1.3% jump. Sompo Holdings ( NHOLF ) climbed 2.58% to be

the biggest gainer on the Nikkei. Tokio Marine Holdings ( TKOMF )

added 1.85%.

Drugmakers continued their strong run, rising

0.57%, led by a 2.14% advance for Daiichi Sankyo ( DSKYF ).

Sumitomo Pharma ( DNPUF ), however, retreated 2.92% after

rising to a fresh 13-month high earlier in the session.

Of the Nikkei's 225 components, 146 fell versus 74 that

rose, with five flat.

(Reporting by Kevin Buckland; Editing by Rashmi Aich and

Subhranshu Sahu)