Investing.com — Asian chip stocks rose Wednesday, following an overnight recovery from market darling Nvidia, as investors looked ahead to an artificial intelligence-driven boom in demand in the coming months.
Stocks closely tied to NVIDIA Corporation (NASDAQ:) were the best performers among their peers after the company rose nearly 7% during Tuesday’s session. The recovery came after a mix of profit-taking and cooling sentiment led to three consecutive days of steep losses at Nvidia.
That of South Korea SK Hynix Inc (KS:), which supplies advanced memory chips to Nvidia, rose 4.2%, while the Japanese semiconductor test equipment maker Advantest Corp. (TYO:), also a supplier to Nvidia, added 6.6%.
TSMC (TW:) (NYSE:), the world’s largest contract chipmaker and one of Nvidia’s largest suppliers, added 1.1%, while electronics maker Hon Hai Precision Industry Co Ltd (TW:), also known as Foxconn, added 0.5%.
Nvidia’s recovery, which saw the company regain a $3 trillion market cap, reflected continued optimism that the company will benefit from an AI boom in the coming months.
Nvidia briefly overtook Microsoft Corporation (NASDAQ:) last week to become the most valuable company on Wall Street amid the AI hype.
AI is also expected to boost global chip demand, an idea that lifted broader Asian chip stocks on Wednesday. Semiconductor Manufacturing International Corp (HK:), China’s largest chipmaker, rose 1% Tokyo Electron Ltd. (TYO:) and Renesas Electronics Corp (TYO:) added 3.2% and 2% respectively.
Markets were now waiting for more signals on demand for AI-driven chips from Micron Technology Inc (NASDAQ:), which is set to report its quarterly results later on Wednesday. The company had posted stronger-than-expected profits in the previous quarter on strong demand, and had also presented stronger guidance.
