Key insights
- Asian suppliers of Nvidia and AMD are extending gains following Nvidia's upbeat AI outlook and positive comments from AMD's CEO. This signals continued strong demand for AI-related chips and components. While some South Korean shares lagged, the overall trend suggests a bullish outlook for the semiconductor industry, potentially benefiting US-listed chipmakers and related tech companies.
Investing.com-- Shares of NVIDIA Corp’s (NASDAQ:NVDA) Asian suppliers rose further on Friday as markets cheered a positive outlook on artificial intelligence-fueled demand from the world’s most valuable company.
Positive comments from AMD (NASDAQ:AMD) CEO Lisa Su, highlighting strong demand for AI, also boosted sentiment towards stocks with chipmaking exposure.
Chip component suppliers, specialty chemicals, and electronics makers benefited from optimism over AI.
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TSMC (TW:2330), the world’s biggest chipmaker and a major supplier to both Nvidia and AMD, rose 0.2% in Taipei trade after adding over 3% in the prior session. Contract electronics maker Hon Hai Precision Industry Co Ltd (TW:2317), or Foxconn, added 0.8%.
Japanese suppliers Murata Mfg Co (TYO:6981), SUMCO Corp. (TYO:3436), Shin-Etsu Chemical Co., Ltd. (TYO:4063) and Ibiden Co Ltd (TYO:4062) surged between 2% and 7%. Sumco benefited from a rating upgrade from UBS, which raised the stock to Neutral from Sell.
South Korean shares lagged. Samsung Electronics Co Ltd (KS:005930) fell 2% after rallying nearly 9% in the prior session, after the company narrowly avoided a major strike in South Korea. Negotiations with its largest union in the country remained ongoing.
Samsung peer SK Hynix Inc (KS:000660) fell 0.2%, also retreating after a bumper rally in the prior session.
Nvidia clocked stronger-than-expected first quarter earnings earlier this week, with the AI bellwether also flagging continued resilience in chip demand from the industry.
While shares of the company lagged on Thursday, its upbeat outlook pointed to sustained AI-fueled demand for the chipmaking industry, a trend that bodes well for its suppliers.