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Asian semiconductor stocks surge after Nvidia earnings

TechnologyAsian semiconductor stocks surge after Nvidia earnings

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Aerial photo shows the factory of Taiwan Semiconductor Manufacturing Company (TSMC) in Nanjing, Jiangsu province, Aug 1, 2023. 

Costfoto | Nurphoto | Getty Images

Semiconductor-related stocks in Asia surged after chipmaker Nvidia posted second-quarter results that beat estimates and issued optimistic guidance for the current period.

Most notably, Nvidia’s performance was driven by its data center business, which includes the A100 and H100 AI chips that are needed to build and run artificial intelligence applications like ChatGPT.

Shares of Taiwan Semiconductor Manufacturing Corp, which manufactures all of Nvidia’s advanced AI chips, climbed as much as 1.81% on Thursday, while counterpart Samsung Electronics gained as much as 2.24%.

In an Aug. 21 note, 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% compounded annual growth rate in the segment for the next five years, adding that it views the company’s outlook guidance “as a near-term share price catalyst [for TSMC].”

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Other stocks in the broader semiconductor sector also rose with South Korean memory chip maker SK Hynix surging as high as 6.29% above its last close.

Despite reports back in June that the U.S. was weighing export restrictions on Nvidia’s chips to China, Chinese semiconductor stocks also were up on Thursday, with Hua Hong Semiconductor advancing 2% and SMIC gaining 1.96%.

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