Asian chip stocks rally as Nvidia earnings fuel AI hype
Investing.com-- Shares of major Asian semiconductor companies surged on Thursday, tracking aftermarket gains in Nvidia after the chipmaker’s consensus-beating earnings and guidance fueled more hype over an AI-driven demand boom.
NVIDIA Corporation (NASDAQ:NVDA) rose as much as 10% in U.S. aftermarket trade after clocking stronger-than-expected fourth quarter earnings, while its revenue guidance for the current quarter was also above street estimates.
Gains in the chipmaker, which is at the heart of an AI-driven surge in valuation over the past year, spilled into Asian chip stocks, particularly those with exposure to AI and Nvidia.
Japanese semiconductor testing equipment maker Advantest Corp. (TYO:6857), which is also an Nvidia supplier, rose 5.1% and was within sight of a record high. Taiwan’s TSMC (TW:2330) (NYSE:TSM)- the world’s biggest contract chipmaker and a key Nvidia supplier- rose 1% and was also close to record highs.
South Korea’s SK Hynix Inc (KS:000660), which makes high-speed memory chips which are integral to AI development and which is also in a partnership with Nvidia, jumped nearly 4%, while Taiwan’s Hon Hai Precision Industry Co Ltd (TW:2317), also known as Foxconn, rose 0.5%.
Other chipmakers or chip-adjacent stocks advanced. Japanese tech investment giant SoftBank Group Corp. (TYO:9984) rose 4.6%, tracking overnight gains in its British chip designing unit Arm Holdings (NASDAQ:ARM), which recently saw its market capital double on its exposure to AI.
Tokyo Electron Ltd. (TYO:8035), Japan’s biggest chipmaker by value, rose 3.9%, while fiberglass products maker Nitto Boseki Co., Ltd. (TYO:3110) jumped 8% after Morgan Stanley analysts upgraded the stock to overweight on the prospect of increased
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