Asian semiconductor stocks surge after Nvidia posts stellar second-quarter results

Semiconductor-related stocks successful Asia surged aft chipmaker Nvidia posted second-quarter results that bushed estimates and issued optimistic guidance for the existent period.

Most notably, Nvidia's show was driven by its information halfway business, which includes the A100 and H100 AI chips that are needed to physique and tally artificial quality applications similar ChatGPT.

Shares of Taiwan Semiconductor Manufacturing Corp, which manufactures each of Nvidia's precocious AI chips, climbed arsenic overmuch arsenic 1.81% connected Thursday, portion counterpart Samsung Electronics gained arsenic overmuch arsenic 2.24%.

In an Aug. 21 note, Morgan Stanley analysts estimated that TSMC volition make 6% of gross from AI-related semiconductors successful 2023.

The squad besides expects Nvidia to spot a 50% compounded yearly maturation complaint successful the conception for the adjacent 5 years, adding that it views the company's outlook guidance "as a near-term stock terms catalyst [for TSMC]."

Other stocks successful the broader semiconductor assemblage besides roseate with South Korean representation spot shaper SK Hynix surging arsenic precocious arsenic 6.29% supra its past close.

Despite reports backmost successful June that the U.S. was weighing export restrictions connected Nvidia's chips to China, Chinese semiconductor stocks besides were up connected Thursday, with Hua Hong Semiconductor advancing 2% and SMIC gaining 1.96%.