Nvidia’s gains on Monday boosted its market valuation to $3.4 trillion, overtaking Microsoft to become the second most valuable entity on Wall Street, sitting behind Apple, which is worth some $3.55 Trillion. With the stock price of Nvidia, which is at the forefront of the AI chip-making industry, hitting an all-time high, other Asian semiconductor stocks also made remarkable gains.
Due to a surge in the demand for AI applications, Nvidia has performed very well, and this has had an impact on the technology industry in general. And the chip-making industry in Asia in particular. Cheap stocks related to Nvidia’s suppliers and other chip companies accordingly went up as good news flowed in.
The upbeat mood remained, and many stocks related to Nvidia and the companies supplying chips rose. The stock of South Korean chip industry SK Hynix, which manufactures artificial intelligence-related memory chips for Nvidia, soared by 2.8%
Samsung Electronics, anticipated to produce HBM chips for some of Nvidia’s products, saw its shares increase by 0.5%.
Shares of Taiwan Semiconductor Manufacturing Company and Foxconn, which are part of the Nvidia supply chain, jumped about 2.4% and 3.5%, respectively.
Japanese semiconductor manufacturer Tokyo Electron jumped 5%, while equipment supplier Advantest saw a 3.8% increase. Renesas Electronics also climbed by more than 4%.
SoftBank Group, which has a stake in the chip designer Arm, saw its shares rise by as much as 6.4%.
The recent jump in Nvidia’s shares has allowed the company to recover from earlier losses. Despite beating analyst’s expectations in late August, its shares fell due to a decline in gross margins. Now, Nvidia’s stock has risen nearly 180% this year.
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