A masked man walks past the Nvidia logo in Taipei, Taiwan.
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Asian semiconductor stocks rose on Tuesday Nvidia It closed at a record high overnight as the company continues to ride the massive wave of artificial intelligence.
Stocks tied to Nvidia’s suppliers and other chip companies also rose as the bullish investor sentiment spread. Shares of South Korean chipmaker SK Hynix, which makes high-bandwidth memory chips for AI applications for Nvidia, rose 2.5%.
Shares of Samsung Electronics, which is expected to make HBM chips for some Nvidia products, rose 0.5%.
shares of Taiwan semiconductor manufacturing company and Hon Hai Precision Industry The companies known internationally as Foxconn, which is part of Nvidia’s supply chain, rose about 2% and 2.5%, respectively.
Japanese semiconductor manufacturing company Tokyo Electron Test equipment suppliers soar 5% Advantest 3.6% increase; Renesas Electronics It rose more than 4%.
Japanese technology conglomerate Softbank Groupowns a stake in the chip designer. armwhich rose by 6.4%.
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A night on Wall Street Nvidia The stock rose 2.4% to close at $138.07, topping its June 18 high of $135.58, increasing its market cap to $3.4 trillion and losing ground. microsoft As the second most valuable company on Wall Street apple.
Monday’s jump in Nvidia stock came as Wall Street enters earnings season. Most of the chipmaker’s top customers have launched technologies and products that require significant investments in Nvidia’s graphics processing units (GPUs).
U.S. technology giants Microsoft, Meta, Google, and Amazon are purchasing large quantities of Nvidia’s GPUs to build growing clusters of computers for advanced AI work. These companies are expected to report their quarterly results by the end of October.
A surge in Nvidia stock has helped the company recoup earlier losses following its second-quarter results. Even though Nvidia’s profits exceeded analysts’ expectations, the company’s stock price fell in late August despite a decline in gross profit margins.
Nvidia stock is up almost 180% this year.
