November 22, 2024

Brighton Journal

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Asian semiconductor stocks rose after Nvidia’s earnings

Asian semiconductor stocks rose after Nvidia’s earnings
  • Taiwan Semiconductor Manufacturing Co., which makes all of Nvidia’s advanced AI semiconductors, rose as much as 1.81%.
  • Shares of semiconductor companies in South Korea also rose, with Samsung Electronics up 2.24% and SK Hynix up 6.29%.

An aerial photo shows the Taiwan Semiconductor Manufacturing Company (TSMC) factory in Nanjing, Jiangsu Province on August 1, 2023.

Coast Photo | Norphoto | Getty Images

Semiconductor-related stocks rose in Asia after chip maker Nvidia reported second-quarter results that beat estimates and issued upbeat guidance for the current period.

Notably, Nvidia’s performance was driven by its data center business, which includes the A100 and H100 AI chips needed to build and run AI applications such as ChatGPT.

Shares of Taiwan Semiconductor Manufacturing Co., which makes all of Nvidia’s advanced artificial intelligence chips, rose as much as 1.81% Thursday, while shares of its peer Samsung Electronics rose as much as 2.24%.

In a note dated August 21, Morgan Stanley analysts estimated that TSMC will generate 6% of revenue from AI-related semiconductors in 2023.

The team also expects Nvidia to see a 50% compound annual growth rate in this segment over the next five years, adding that it views the company’s future guidance as “a catalyst for the share price in the near term.” [for TSMC]”.

Read more about the technology and cryptography from CNBC Pro