Asian chip-related stocks rallied on renewed investor enthusiasm after Nvidia CEO Jensen Huang made optimistic comments about the company’s outlook and the broader artificial intelligence (AI) landscape.
Speaking at the Goldman Sachs Communacopia + Technology Conference in San Francisco, Huang highlighted the overwhelming demand for Nvidia’s AI-driven products, calling it “emotional” for customers reliant on the company’s technology.
Following Huang’s remarks, which helped boost Nvidia shares by 8% on Wednesday, Asian semiconductor companies saw significant gains. Taiwan Semiconductor Manufacturing Corp (TSMC), Nvidia’s primary chip supplier, jumped as much as 5%, while Hon Hai Precision Industry, better known as Foxconn, rose over 4%.
In Japan, chip-related stocks also experienced a surge. Semiconductor testing equipment supplier Advantest saw a rise of over 9%, with Tokyo Electron and Renesas Electron posting gains of 4.6% and 3%, respectively. SoftBank Group, which holds a stake in chip designer Arm, increased by more than 7%.
South Korean tech giants Samsung Electronics and SK Hynix, the world’s largest memory chip manufacturers, also benefitted from the positive sentiment, rising 2% and 7.5%, respectively.
Huang underscored the importance of a diverse and interconnected Asian supply chain in supporting Nvidia’s success, emphasizing the company’s ability to adapt to potential geopolitical challenges. He also stressed that AI is not merely about chips but about the broader infrastructure that enables AI-driven advancements. He noted that Nvidia plays a pivotal role in this ecosystem, working with cloud providers and developers in the growing field of generative AI.
Despite recent volatility, Nvidia shares have risen 136% this year, driven by investor enthusiasm for AI technology.
With input from CNBC, Axios, Market Watch, and Yahoo Finance.
