An aerial photograph showcases the Nanjing factory of Taiwan Semiconductor Manufacturing Company (TSMC) in Jiangsu province on August 1, 2023.
Image Source: Costfoto | Nurphoto | Getty Images
Shares of semiconductor-related stocks in Asia experienced a significant surge following the release of chipmaker Nvidia’s second-quarter results, which exceeded expectations. Nvidia also provided an optimistic outlook for the current period.
Nvidia’s exceptional performance can be attributed to its data center business, which includes the A100 and H100 AI chips crucial for the development and operation of artificial intelligence applications like ChatGPT.
As a result, Taiwan Semiconductor Manufacturing Corp (TSMC), the manufacturer of all of Nvidia’s advanced AI chips, saw its stock rise by as much as 1.81% on Thursday. Similarly, Samsung Electronics, a competitor of TSMC, experienced a gain of up to 2.24%.
In a recent note, Morgan Stanley analysts predicted that TSMC would generate 6% of its revenue from AI-related semiconductors in 2023. The analysts also forecasted a 50% compounded annual growth rate for Nvidia in the AI segment over the next five years. They view Nvidia’s positive outlook as a potential catalyst for TSMC’s share price in the short term.
Other companies in the broader semiconductor sector also experienced gains, with South Korean memory chip maker SK Hynix surging as much as 6.29% above its previous closing price.
Despite previous reports in June suggesting that the U.S. may impose export restrictions on Nvidia’s chips to China, Chinese semiconductor stocks also saw an increase on Thursday. Hua Hong Semiconductor rose by 2%, while SMIC gained 1.96%.
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