Semiconductor stocks in Asia experienced a significant surge following the release of chipmaker Nvidia’s impressive second-quarter results and optimistic guidance for the current period. Nvidia’s strong performance was primarily driven by its data center business, which includes advanced AI chips like the A100 and H100 that are essential for building and running artificial intelligence applications.
Shares of Taiwan Semiconductor Manufacturing Corp (TSMC), responsible for manufacturing all of Nvidia’s advanced AI chips, climbed as much as 1.81% on Thursday. Similarly, Samsung Electronics, Nvidia’s counterpart, saw a rise in stock prices, gaining as much as 2.24%.
Analysts at Morgan Stanley predicted that by 2023, TSMC would generate around 6% of its revenue from AI-related semiconductors. The team further projected a 50% compounded annual growth rate for Nvidia’s AI chip segment over the next five years. As a result, they view Nvidia’s positive outlook guidance as a potential catalyst for TSMC’s share price in the near term.
The broader semiconductor sector also experienced a boost, with South Korean memory chip maker SK Hynix surging as high as 6.29% above its previous closing price.
Despite previous reports in June suggesting that the US was considering export restrictions on Nvidia’s chips to China, Chinese semiconductor stocks also saw an increase. Hua Hong Semiconductor rose by 2%, and SMIC gained 1.96% on Thursday.
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