After Nvidia, a prominent participant in the AI chip business, hit an all-time high stock price the day before, as a result, Asian semiconductor equities saw strong advances on Tuesday. Nvidia’s market value jumped to $3.4 trillion, making it the 2nd most valuable firm on Wall Street, after Apple, which is worth at $3.55 trillion.
The increase in Nvidia’s stock price spurred market optimism and a surge among Asian semiconductor businesses, most of which are involved in the production of AI chips or are part of Nvidia’s supply chain.
Asian Chip Stocks Rise The shares of South Korean chipmaker SK Hynix, which makes HBM chips for Nvidia’s AI products, increased by 2.8%. Samsung Electronics, another business that is expected to manufacture HBM chips for Nvidia, saw a 0.5% increase in stock value, which was still good.
The market optimism also helped Taiwan Semiconductor Manufacturing Company, whose shares increased by 2.4% and is a key producer of Nvidia’s chips. The more notable 3.5% increase was seen by Hon Hai Precision Industry, popularly known as Foxconn, which collaborates closely with Nvidia.
In Japan, Tokyo Electron, a company that manufactures semiconductors, jumped 5%, while Advantest, a company that provides chip testing equipment, increased 3.8%. Another Japanese chip manufacturer, Renesas Electronics, had a more than 4% increase in stock price. Shares of SoftBank Group, a company that owns stock in chip creator Arm, increased by as high as 6.4%.
The increase in Asian semiconductor equities followed a 2.4% increase in Nvidia’s U.S. shares, which closed Monday at a new high of $138.07. This increase exceeded the June high of $135.58 for Nvidia. The rise of Nvidia is directly related to the increasing need for AI technology. An important factor boosting investor confidence is the increased demand for the company’s GPUs for AI applications.
Nvidia shares hit an all-time high as the chipmaker continues to ride a massive wave of demand for its artificial intelligence chips.
As a result of the massive purchases of its GPUs by prominent U.S. tech giants like Microsoft, Meta, Google, and Amazon, Nvidia has been riding the AI wave. Because these businesses are developing AI-powered systems that need Nvidia’s high-performance chips, the company’s stock price has increased quickly.
Nvidia and Semiconductor Companies’ Outlook A number of Nvidia’s most important clients are expected to come out their financial results as the stock market enters earnings season. Nvidia and its semiconductor supply chain partners will probably continue to gain from the expected spike in demand for AI technologies.
Nvidia’s stock has recovered well this year, even though it fell previously after the company’s second-quarter earnings were announced. As a result of the company’s dominance in the AI chip market, its shares had increased by around 180% in 2024.
Manufacturers and suppliers of AI chips, particularly those in Asia, stand to gain from the sector’s continuous expansion as AI propels technical breakthroughs
