© Reuters.
Investing.com — Major Asian technology stocks, chiefly Nvidia’s regional suppliers, rose sharply on Thursday after the world’s most valuable chipmaker clocked consensus-beating quarterly results and forecast strong demand for artificial intelligence.
TSMC (TW:) (NYSE:), Asia’s largest chipmaker and a key supplier to Nvidia (NASDAQ:), rose 1.8%, while South Korea’s SK Hynix Inc (KS:), which supplies Nvidia with memory chips, rallied nearly 6%.
Japanese chip equipment maker Advantest Corp (TYO:) added over 2%, while memory chips giant Samsung Electronics Co Ltd (KS:) rose 1.8%.
Nvidia clocked on Wednesday, and also presented a strong revenue outlook on the back of booming interest in AI development. Shares of the chipmaker surged over 9% to a record high in aftermarket trade.
Nvidia CEO Jensen Huang told Reuters that the , and that the firm will buy back $25 billion of its shares.
The firm’s optimistic outlook on AI-fueled a rally across most technology stocks, with Asian heavyweights Baidu Inc (HK:) (NASDAQ:), Alibaba Group (HK:) (NYSE:) and Tencent Holdings (HK:) up between 1.5% and 3.4%. Of the three, Baidu was the best performer, after the Chinese search engine also logged strong quarterly earnings on growing AI demand.
AI demand presents a positive scenario for the ailing tech industry, particularly chipmakers, which are grappling with what is seen as a cyclical downturn in the industry. Tech investment also slowed substantially this year amid rising interest rates.
Other major Asian tech stocks also advanced. Japanese conglomerate SoftBank Group Corp (TYO:) rose 1.1%, also benefiting from AI hype as the firm prepares to list its chip designing unit Arm.
Tech-heavy Asian bourses were the best performers among their Asian peers on Thursday, with the and the index up more than 1% each. South Korea’s also added 0.8%.
Some cooling in U.S. Treasury yields also aided tech stocks, although yields remained close to multi-decade highs hit this week. Focus is now largely on upcoming signals on U.S. monetary policy from the , with Federal Reserve Chair Jerome Powell set to talk on Friday.
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