Nvidia's Overnight Rally Boosts Chip Stocks in Asia Amid AI Optimism

Money | June 19, 2024, 1:53 a.m.

Chipmaker Nvidia's rise to becoming the world's most valuable company has boosted Asia's semiconductor stocks. Taiwan Semiconductor Manufacturing Corp (TSMC) and Foxconn saw substantial gains, reflecting investor optimism in Nvidia's success. TSMC produces high-performance graphics processing units for Nvidia's AI applications, while Foxconn partners with Nvidia to build "AI factories" for various uses, including electric vehicles. In Japan, Advantest and SoftBank Group Corp also saw stock increases, driven by Nvidia's influence. South Korea's Samsung and SK Hynix, suppliers of memory chips to Nvidia, experienced significant growth as well. Despite challenges with chip testing, Nvidia is exploring partnerships with Samsung and Micron Electronics. Asia's semiconductor market is thriving, fueled by Nvidia's innovation and success in the AI industry.