Chip stocks experienced a surge in after-hours trading on Wednesday, led by chipmaker giant Nvidia. The company’s shares rose by approximately 0.6% to surpass $136 during early morning after-hours trading when U.S. markets were closed. This increase followed Nvidia’s all-time high on Tuesday, closing at $135.58 with a growth of over 3.5%. Similarly, other chip stocks saw a rise, especially in Asia where major tech manufacturers are located, including Nvidia’s competitors.
Key competitors such as Taiwan Semiconductor Manufacturing Company (TSMC) experienced a surge of more than 4% at market close in Taipei. Hong Kong-listed companies Hua Hong Semiconductor and Semiconductor Manufacturing International Corp also saw gains of 0.4% and 1%, respectively. South Korean chipmakers Samsung Electronics and SK Hynix recorded increases of up to 7% during trading hours, although these gains decreased as the day progressed.
In the U.S., chipmakers like Arm Holdings (ARM) and Micron Technology (MU) saw moderate growth, with increases of nearly 9% and 4% on Tuesday. However, Intel’s performance remained relatively unchanged, despite a decline of over 1% the previous day. Even Foxconn, known as Hon Hai Technology Group, experienced an increase in shares following Nvidia’s rally, closing up by more than 2%.
Nvidia’s rapid evolution from a gaming chip manufacturer to an AI industry leader has been remarkable. The company recently surpassed Microsoft to become the most valuable public company globally, signaling its shift towards specialized AI chips. This transformation has significantly boosted Nvidia’s market capitalization, climbing from $16 billion in 2016 to around $800 billion in 2021 and fluctuating to approximately $300 billion in 2022. The growing demand for AI chips has been a key driver of Nvidia’s success, with its value peaking at $3 trillion in mid-2024.
The company’s CEO, Jensen Huang, has also seen a substantial increase in his net worth. Forbes estimates Huang’s wealth at $118.7 billion, making him the 11th richest person globally. His fortune surged by $4 billion in a single day, showcasing the impact of Nvidia’s success on his personal finances. Huang’s wealth places him ahead of billionaires like Mukesh Ambani and near the top ten richest individuals in the world.
The rise of AI technology has not only elevated Nvidia’s status but also contributed to its CEO’s exponential wealth growth. The company’s impressive performance and Jensen Huang’s substantial net worth reflect the ongoing dominance of Nvidia in the tech industry.
Article Source
https://www.forbes.com/sites/roberthart/2024/06/19/chip-stock-rally-continues-wednesday-after-ai-boom-catapults-nvidia-to-worlds-most-valuable-company/
