Asian semiconductor stocks surged following Nvidia’s rise to become the world’s most valuable company, with the company’s market capitalization hitting $3.34 trillion. This surpassed Microsoft, which is now valued at $3.32 trillion. Nvidia’s shares have increased by 174% this year. Taiwan Semiconductor Manufacturing Corporation (TSMC), which produces Nvidia’s high-performance graphics processing units, saw its stock rise by 4.34%. Foxconn, known as Taiwan Hon Hai Precision Industry, also experienced a 4.78% gain after announcing a partnership with Nvidia to build “AI factories.” This partnership will involve using Nvidia chips in various applications like electric vehicles and large language models. Additionally, South Korean companies Samsung Electronics and SK Hynix also benefited from Nvidia’s success. Samsung’s shares rose by 3.38%, while SK Hynix gained 7.04%. SK Hynix provides high-bandwidth memory chips to Nvidia, which are crucial for AI chipsets. Nvidia’s CEO, Jensen Huang, mentioned that the company was exploring using HBM chips from Samsung and Micron Electronics. Samsung refuted reports that its chips were failing Nvidia tests due to heat and power consumption issues, with Huang dismissing the story as unfounded.
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https://www.cnbc.com/amp/2024/06/19/nvidia-rally-overnight-lifts-chip-related-stocks-in-asia-on-ai-optimism-.html
Asian chip-related stocks surge on AI optimism following Nvidia overnight rally
