Asian semiconductor stocks experienced a notable rise on Tuesday after Nvidia’s shares closed at a record high overnight, propelled by the company’s ongoing success in the booming artificial intelligence (AI) sector.
The positive sentiment surrounding Nvidia extended to its suppliers and other chip manufacturers across Asia. Shares of South Korean chipmaker SK Hynix, known for producing high-bandwidth memory (HBM) chips for AI applications, climbed 2.8%. Similarly, Samsung Electronics, anticipated to manufacture HBM chips for certain Nvidia products, saw its stock increase by 0.5%.
In Taiwan, shares of Taiwan Semiconductor Manufacturing Company (TSMC) and Hon Hai Precision Industry, commonly known as Foxconn, rose by approximately 2.4% and 3.5%, respectively, as they are integral parts of Nvidia’s supply chain.
Japanese semiconductor firms also saw significant gains. Tokyo Electron surged 5%, while equipment supplier Advantest gained 3.8%. Renesas Electronics experienced a rise of over 4%. Additionally, SoftBank Group, a major stakeholder in chip designer Arm, jumped as much as 6.4%.
Nvidia’s Meteoric Rise
On Wall Street, Nvidia’s stock increased by 2.4% to close at $138.07, surpassing its previous high of $135.58 set on June 18. This surge propelled the company’s market value to $3.4 trillion, positioning it as the second most valuable company on Wall Street, trailing only behind Apple.
The rise in Nvidia’s shares coincides with the upcoming earnings season, as major technology companies are expected to report results by the end of October. Notably, leading firms such as Microsoft, Meta, Google, and Amazon have been purchasing Nvidia’s graphics processing units (GPUs) in large quantities to support their advanced AI initiatives.
Despite a dip in late August following its second-quarter earnings report—where Nvidia’s earnings exceeded analysts’ expectations but its gross margins declined—the stock has since recovered substantially. Year-to-date, Nvidia shares have surged nearly 180%, highlighting the company’s strong positioning in the AI market and the increasing demand for its products.
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