Asian semiconductor stocks surged on Wednesday following a rise in Nvidia’s stock price, making it the world’s most valuable company with a market capitalization of $3.34 trillion, surpassing Microsoft.
In Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn saw gains of up to 4.34% and 4.78%, respectively. TSMC manufactures Nvidia’s high-performance graphics processing units for machine learning applications, while Foxconn has a strategic partnership with Nvidia to build “AI factories” using Nvidia chips in various applications.
Japan’s Advantest, a semiconductor test equipment supplier, and SoftBank Group Corp., which has a stake in chip designer Arm, also experienced stock price increases. Advantest, despite having Nvidia as a client, reported that Nvidia accounted for less than 1% of its total sales. SoftBank Group Corp.’s shares rose as much as 4.19%.
In South Korea, Samsung Electronics and SK Hynix, a memory chip maker, saw gains of up to 3.38% and 7.04%, respectively. SK Hynix provides high-bandwidth memory (HBM) chips to Nvidia for use in AI chipsets. Samsung’s chips were reportedly being tested by Nvidia, and although there were initial reports of issues, Nvidia’s CEO, Jensen Huang, denied any problems.
Overall, Asian semiconductor stocks rallied as the AI boom continues to drive demand for chips and related technology.
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