Asian chipmakers, tech stocks rally as TSMC touts AI demand
Investing.com-- Major Asian chipmaking and technology stocks rose sharply on Friday, tracking better than expected earnings from TSMC and as the chipmaking giant also flagged a positive outlook on AI demand.
Taiwan Semiconductor Manufacturing Corp (TW:2330) (NYSE:TSM) rose over 5% in Taiwan trade to a near two-year high, after it clocked a smaller-than-expected decline in its fourth-quarter earnings.
CEO C.C. Wei said on Thursday TSMC was well-positioned to capitalize on a boom in artificial intelligence development over the coming year, and that it was already seeing improved demand for its most advanced chips.
«We expect 2024 to be a healthy growth year for TSMC, supported by [...] robust AI-related demand. AI models need to be supported by more powerful semiconductor hardware [...] thus the value of TSMC's technology position is increasing,» Wei said in a post-earnings call.
His comments triggered buying into several other Asian chipmaking stocks on Friday. South Korea’s Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), which manufacture memory chips that are used in AI computing, rose over 3% each.
Japan’s Advantest Corp. (TYO:6857), which makes semiconductor testing equipment, rose over 8%, while chipmaker Tokyo Electron Ltd. (TYO:8035) surged nearly 5%. China’s Semiconductor Manufacturing International Co, or SMIC, added nearly 3% in Hong Kong trade.
U.S. chipmaking majors also rebounded on Thursday after TSMC’s outlook, with NVIDIA Corporation (NASDAQ:NVDA), which is at the heart of an AI-driven boom in chip demand, up nearly 2% in overnight trade. Nvidia has clocked a series of consensus-beating quarterly earnings on support from AI-fueled demand.
TMSC’s outlook pushed up hopes that increased
Read more on investing.com
