The Taiwan Semiconductor Manufacturing Company (TSMC) logo is seen during the opening ceremony of TSMC’s Global RnD Center in Hsinchu on July 28, 2023. (Photo by Amber Wang/AFP)
Amber Wang | AFP | Getty Images
Shares of semiconductor and related stocks rose in Asia on Wednesday after chipmaker Nvidia became the world’s most valuable company, benefiting from the artificial intelligence boom.
Nvidia stock rose 3.6% on Tuesday, pushing the company’s market cap to $3.34 trillion, surpassing Microsoft, which is now worth $3.32 trillion.
Earlier this month, Nvidia hit $3 trillion in profits for the first time, surpassing Apple. Nvidia shares are up nearly 174% so far this year.
Shares of contract chip maker Taiwan Semiconductor Manufacturing rose as much as 4.34% as upbeat investor sentiment on Nvidia carried over to technology stocks in Asia.
TSMC makes Nvidia’s high-performance graphics processing units that help run large language models — machine learning programs that can recognize and generate text.
Shares of Hon Hai Precision Industry in Taiwan – known globally as Foxconn – rose as much as 4.78%. It has a strategic partnership with Nvidia for Building “artificial intelligence factories” Which will use Nvidia chips in a full range of applications, Including electric vehicles And M.Sc.
Nvidia’s value chain also extends to South Korea’s memory chip maker SK Hynix and conglomerate Samsung Electronics.
Samsung shares rose as much as 3.38%, while SK Hynix shares rose as much as 7.04%.
SK Hynix Provides High Bandwidth Memory (HBM) chips for NvidiaWhich is used in artificial intelligence chips. Until March, the company was the only known supplier of HBM chips to Nvidia, Reuters reported.
In June, Nvidia CEO Jensen Huang reportedly told reporters that the company was considering HBM chipsets made by Samsung and US company Micron Electronics.
Samsung had previously refuted it Exclusive report by Reuters That its chips failed Nvidia’s tests due to heat and power consumption issues, Huang was also quoted as saying “there’s no story there,” when asked about the report.
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