6 new stocks added last week by ProPicks AI are already up by 2.5%. Don't miss the momentum!Get 50% off

Asian tech, chipmaking stocks rise as TSMC spurs AI cheer

Published 07/10/2024, 11:39 PM
© Reuters
TSM
-
000660
-
0981
-
2330
-

Investing.com-- Technology stocks in Asia rose on Thursday, with chipmakers in the lead as strong monthly revenue figures from TSMC drummed up optimism over artificial intelligence-driven demand. 

TSMC (TW:2330) (NYSE:TSM) rose nearly 2% in Taiwan trade and hit a record high of T$1,070.0, as the world’s largest contract chipmaker clocked revenue of T$207.87 billion ($6.4 billion) in June, bringing its second quarter revenue to T$673.51 billion, which beat market expectations.

The strong revenue came as the chipmaking giant likely benefited from increased demand for chips in the AI industry, as more companies moved to ramp up AI development and build chip infrastructure to support their efforts. 

The strong revenue figures saw investors positioning for a bumper second-quarter earnings report from TSMC next week. The firm will report its second quarter earnings on July 18. 

Asian tech stocks, particularly chipmakers, advanced on Thursday, tracking gains in TSMC. Optimism over TMSC also sparked overnight gains in U.S. chipmakers, with NVIDIA Corporation (NASDAQ:NVDA), TSMC’s biggest customer, rising over 2%. 

In Asia, memory chip SK Hynix Inc (KS:000660), which has been tied closely to the AI industry, rose over 3%.

Japan’s Sony Corp (TYO:6758) and Mitsubishi Electric Corp (TYO:6503) rose 3.7% and 1%, respectively, as a recent report said the two planned to invest a combined 5 trillion yen ($31 billion) in chip development over the next five years.

Tokyo Electron Ltd. (TYO:8035) added 1.2%, while Renesas Electronics Corp (TYO:6723) surged 2.9%. But chip testing equipment maker Advantest Corp. (TYO:6857) fell slightly after hitting a four-month high earlier in the day.

In China, Semiconductor Manufacturing International Corp (HK:0981), the country’s biggest chipmaker, rose nearly 2% in Hong Kong trade. Other major Chinese technology stocks also rose, with Tencent Holdings Ltd (HK:0700), Alibaba Group Holding Ltd (HK:9988) and Baidu Inc (HK:9888) rising between 0.5% and 2.3% in Hong Kong trade. 

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.