Asian semiconductor stocks rise after shares of AI chip darling Nvidia hit a record high

Asian spot stocks roseate connected Tuesday aft Nvidia closed astatine a grounds precocious overnight arsenic the spot institution continues to thrust the monolithic artificial quality wave.

Stocks tied to Nvidia suppliers and different spot companies rallied successful Asia arsenic the bullish investors sentiment spilled over. Shares of South Korean chipmaker SK Hynix, which manufacturers precocious bandwidth representation chips for AI applications, for Nvidia surged 2.5%.

Samsung Electronics, which is expected to beryllium manufacturing HBM chips for immoderate Nvidia products, saw roseate 0.5%.

Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry — known internationally arsenic Foxconn — which are portion of the Nvidia proviso concatenation jumped astir 2% and 2.5%, respectively.

The capitalist optimism besides extended to chip-related stocks successful general. Japanese semiconductor manufacturing steadfast Tokyo Electron surged 5%, investigating instrumentality supplier Advantest gained 3.6% and Renesas Electronics roseate implicit 4%.

Japanese exertion conglomerate SoftBank Group, which owns a involvement successful spot decorator Arm, jumped arsenic overmuch arsenic 6.4%.

Overnight connected Wall Street, Nvidia shares roseate 2.4% to adjacent astatine $138.07, surpassing their June 18 precocious of $135.58, lifting its marketplace worth to $3.4 trillion, unseating Microsoft arsenic the 2nd astir invaluable institution connected Wall Street aft Apple.

The surge successful Nvidia shares Monday came arsenic Wall Street heads into the net season. Most of the chipmakers' apical customers person unveiled technologies and products that necessitate hefty concern successful Nvidia's graphics processing units, oregon GPUs.

U.S. large tech companies Microsoft, Meta, Google and Amazon person been purchasing Nvidia's GPUs successful monolithic quantities to physique increasing clusters of computers for their precocious AI work. These companies are acceptable to study quarterly results by the extremity of October.

The accelerated surge successful Nvidia shares has helped it recoup earlier losses pursuing the company's second-quarter earnings. Its shares sank successful precocious August adjacent arsenic Nvidia net topped analysts' expectations but it's gross margins dipped.

Nvidia shares are present up astir 180% this year.