Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Author
عابس الملك
May 25, 2023 2:17AM ET
HL
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Free Webinar - Webinar: Simplify Options Trading | Thursday, September 28, 2023 | 08:00PM EDT Enroll Now
Nvidia’s Asian suppliers rally on positive AI-fuelled outlook
Published May 25, 2023 01:55AM ET
© Reuters.
Investing.com -- Shares of major Asian Nvidia Corp (NASDAQ:NVDA) suppliers rose sharply on Thursday, tracking an overnight rally in the graphics card maker on strong first-quarter results and a positive outlook on chip demand amid growing interest in artificial intelligence.
Japan’s Advantest Corp (TYO:6857), which supplies semiconductor testing technology to Nvidia, was among the best performers for the day, rallying 16% to a record high.
Taiwan Semiconductor Manufacturing Corp (TW:2330), the world’s largest chipmaker by production and a major Nvidia supplier, also jumped over 3%, while South Korea’s SK Hynix Inc (KS:000660) surged nearly 5%.
Optimism over Nvidia spilled over into other Asian chipmaking stocks. Japanese semiconductor players Nippon Electric Glass Co Ltd (TYO:5214) and SUMCO Corp (TYO:3436) rose nearly 4% each, in turn helping the benchmark Nikkei 225 rise back towards 33-year highs hit earlier in the week.
Nvidia shares surged about 25% in after hours trading, as the world’s most valuable chipmaker logged a better-than-expected first-quarter profit. The firm also posited a stronger-than-expected second-quarter revenue forecast, citing increased demand from AI development.
The firm is seeing increased demand for its data center chips, which play a key role in powering the AI technology that saw a significant jump in popularity this year. Generative AI, which is used by tools such as startup OpenAI’s ChatGPT, uses past data to create new content such as text, images, and programming code.
The release of ChatGPT attracted over a million users in a week, and also ramped up speculation over what industries it could disrupt.
Increasing demand from AI offers a respite to chipmakers, which were otherwise facing a slowdown in demand this year amid worsening global economic conditions. A chip shortage over the past two years saw global chipmakers greatly increase their production capacity, which then faced the risk of not offering enough returns on investment this year.
Majors such as TSMC and Samsung (KS:005930) had both warned of a demand slowdown this year as technology investment dries up, while Nvidia rival Advanced Micro Devices Inc (NASDAQ:AMD) had recently forecast quarterly sales below Wall Street expectations.
Related Articles
Comments (1)
sk kalesha
May 25, 2023 2:17AM ET
hi
0
0
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.