AI and semiconductor stocks surge after Nvidia’s earnings beat

Artificial
intelligence
and
semiconductor
chip
stocks
rallied
after
U.S.
chip
design
firm


Nvidia

beat
Wall
Street’s
expectations
for
fourth-quarter
earnings
and
revenue
on
Wednesday
and
projected
“continued
growth”
in
2025
and
beyond.

Nvidia
supplier


Taiwan
Semiconductor
Manufacturing
Company
jumped
as
much
as
2.05%
in
Thursday
morning
trade.
TSMC
is
the
world’s
largest
contract
chip
maker
and
produces
advanced
processors
for
companies
like
Nvidia
and
iPhone
maker


Apple.

Shares
of
server
component
supplier


Super
Micro
Computer
rose
11.42%
in
Wednesday’s
after-hours
trading.
Dutch
chip
equipment
manufacturer


ASML,
which
supplies
TSMC
lithography
machines
critical
to
chip
making,
jumped
2.7%
in
the
U.S.
during
after
hours
trading.

Following
Nvidia’s
earnings
report,
rivals


Advanced
Micro
Devices
and
SoftBank-backed
U.K.
chip
designer


Arm
Holdings
surged
4.08%
and
7.87%,
respectively,
in
after
hours
trading.

Nvidia,
which
custom
designs
AI
chips
for
the
likes
of
Amazon,
Microsoft
and
Google,
saw
skyrocketing
demand
for
its
graphics
processing
units
thanks
to
the
AI
boom.

OpenAI’s
ChatGPT,
which
gained
massive
popularity
worldwide
in
November
2022
for
its
ability
to
generate
human-like
responses
to
user
prompts,
is
trained
and
run
on
thousands
of
Nvidia’s
GPUs.
Nvidia
shares
rose
9%
in
extended
trading.

South
Korea’s
memory
chipmakers
Samsung
Electronics
and
SK
Hynix
gained
0.41%
and
3.22%
respectively
on
Thursday.
Large
language
models
such
as
ChatGPT rely
on
high-performance memory
chips
to
remember
details
from
past
conversations
and
user
preferences
in
order
to
generate
humanlike
responses.

Other
Taiwanese
semiconductor
firms Orient
Semiconductor
Electronics
and
MediaTek
rose
2.94%
and
1.53%
respectively
on
Thursday.

Intel,


Broadcom
and


Qualcomm,
three
U.S.
chip
makers,
saw
increases
in
share
prices
in
extending
trading
Wednesday,
surging
1.38%,
2.79%
and
1.80%
respectively.

“Fundamentally,
the
conditions
are
excellent
for
continued
growth”
in
2025
and
beyond,
Nvidia
CEO
Jensen
Huang
told
analysts
on
Wednesday
in
an
earnings
call.
He
added
that
demand
for
Nvidia
GPUs
will
remain
high
due
to
generative
AI
and
an
industry-wide
shift
away
from
central
processors
to
the
accelerators
that
Nvidia
makes.

“If
I
was
going
to
just
kind
of
put
a
stake
in
the
ground
relative
to
the
conversation,
whether
it’s
related
to
market
share
or
to
their
margins,
I
think
they’re
going
to
surprise
people,”
Gene
Munster,
managing
partner
of
Deepwater
Asset
Management,
told
CNBC’s
“Street
Signs
Asia”
on
Thursday.