Nvidia hits record high in Asian semiconductor stocks

Asian chip stocks rose on Tuesday after… Nvidia It closed at a record high overnight as the chip company continued to ride the massive artificial intelligence wave.

Stocks linked to Nvidia suppliers as well as other chip companies rose as bullish investor sentiment spread. Nvidia shares of South Korean chipmaker SK Hynix, which makes high-bandwidth memory chips for artificial intelligence applications, rose 2.8%.

samsung electronics, Which is expected to manufacture HBM chips For some Nvidia products, its shares saw a 0.5% rise.

shares Taiwan Semiconductor Manufacturing Company and Hon Hai Precision Industry – known globally as Foxconn – which is part of the Nvidia supply chain, jumped about 2.4% and 3.5%, respectively.

Japanese semiconductor manufacturing company Tokyo Electron Test equipment supplier rose 5% Adventist It rose by 3.8% and Renesas Electronics rose more than 4%.

Japanese technology conglomerate Softbank Groupwhich owns a stake in the chip designer armIt jumped by as much as 6.4%.

Overnight on Wall Street, Nvidia Shares rose 2.4% to close at $138.07, surpassing the June 18 high of $135.58. It raised its market value to $3.4 trillion, displacing it Microsoft As the second most valuable company on Wall Street after apple.

Major US technology companies Microsoft, Meta, Google and Amazon have purchased GPUs from Nvidia in huge quantities to build growing clusters of computers for their advanced work in artificial intelligence. These companies are scheduled to announce their quarterly results by the end of October.

The rapid rise in Nvidia shares helped offset its earlier losses following the company’s second-quarter earnings. Its shares fell in late August even as Nvidia’s earnings beat analysts’ expectations but its gross margins fell.

Nvidia shares are now up nearly 180% this year.