Semiconductor stocks in Asia rebounded strongly in the trading session on June 26, after technology giant Nvidia set a new historical high and surpassed Microsoft to become the world's most valuable company.
In Korea, shares of SK Hynix - a memory chip supplier for Nvidia - increased by 3.53%. Taiwan's leading chip maker TSMC - a unit processing high-performance graphics processors for Nvidia's large language models (LLM) - also recorded a slight increase of 0.47%.
Hon Hai Precision Industry (Foxconn) - Nvidia's strategic partner in building "AI factories" also increased by 0.77%. These factories apply Nvidia chips in many fields, from electric vehicles to general artificial intelligence.
In Japan, stocks of companies related to chips and AI also increased sharply. Advantest - a semiconductor testing equipment manufacturer increased by 3.93%, to a record high. softBank - a major shareholder of arm chip design company (UK) increased by 4.38%. Major stocks such as Tokyo Electron, Lasertec and Renesas also increased from 1.5% to more than 2%.
According to Kingsley Jones - Information Director of consulting firm Jevons Global, the increase in Asian chip stocks reflects the market's confidence in the strong growth prospects of the artificial intelligence sector. Concerns about trade barriers have temporarily subsided, and investors are returning to big names in Japan, Korea, Taiwan (China). Nvidia is the main driver of this positive sentiment, said Kingsley Jones.
In the US market, Nvidia shares increased by more than 4% in the trading session on June 25, closing the session at a record of 154.31 USD. This increase breaks the old peak of 149.43 USD set in January. With a market capitalization of $3.770 billion, Nvidia has surpassed Microsoft to become the most valuable company on the planet.
This rally reflects investors' growing confidence in Nvidia's dominance in the AI sector, despite US export restrictions to China.
