Semiconductor-related stocks in Asia experienced a surge following chipmaker Nvidia’s strong second-quarter results, which exceeded estimates and included optimistic guidance for the current period. The notable highlight in Nvidia’s performance was its data center business, which involves AI chips like the A100 and H100 that are essential for building and operating artificial intelligence applications.
Taiwan Semiconductor Manufacturing Corp (TSMC), responsible for manufacturing Nvidia’s advanced AI chips, saw its shares rise by up to 1.81% on the back of this news. Similarly, Samsung Electronics, another player in the semiconductor industry, witnessed a gain of up to 2.24%.
Morgan Stanley analysts predicted that TSMC could generate about 6% of its revenue from AI-related semiconductors in 2023. They also projected a 50% compounded annual growth rate in the AI chip segment for Nvidia over the next five years. The analysts suggested that Nvidia’s positive outlook could serve as a near-term catalyst for TSMC’s share price.
The broader semiconductor sector also enjoyed a positive ripple effect, with SK Hynix, a South Korean memory chip manufacturer, surging by up to 6.29% from its previous close.
Despite earlier reports suggesting potential export restrictions on Nvidia’s chips to China, Chinese semiconductor stocks experienced gains as well. Hua Hong Semiconductor advanced by 2%, and SMIC (Semiconductor Manufacturing International Corporation) gained 1.96%.
These developments underscore the interconnectedness of the global semiconductor market and the significance of major players’ performance in influencing the broader industry. The growing demand for AI and data center solutions continues to drive investments and opportunities in the semiconductor sector, leading to fluctuations in stock prices based on industry announcements and financial results.
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