Shares of Asian chip makers rose Thursday after strong earnings from Nvidia buttressed expectations of booming global demand for semiconductors used in artificial intelligence.
Nvidia, a leading American chip maker, reported better-than-expected earnings for the fourth quarter, driven by strong demand for its gaming and data center chips. The company’s revenue rose 61% year-over-year to $5 billion, surpassing Wall Street’s estimates of $4.82 billion. Nvidia’s stock surged nearly 7% in after-hours trading, reflecting investor confidence in the company’s growth prospects.
The strong performance of Nvidia has raised hopes that other chip makers in the Asian region will also benefit from the growing demand for semiconductors. Asian chip makers like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and SK Hynix have all reported robust earnings in recent quarters, driven by strong demand for chips used in smartphones, computers, and other electronic devices.
TSMC, the world’s largest contract chip maker, reported a 22% increase in revenue for the fourth quarter, driven by strong demand for its advanced semiconductor technology. The company’s strong performance bodes well for the entire semiconductor industry in Asia, as TSMC is a key supplier to many of the region’s chip makers.
Samsung Electronics, the world’s largest memory chip maker, also reported strong earnings for the fourth quarter, driven by robust demand for its DRAM and NAND flash memory chips. The company’s chip division saw a 14% increase in revenue, reflecting strong demand from data centers, smartphones, and other applications.
SK Hynix, another major player in the Asian semiconductor industry, reported a 20% increase in revenue for the fourth quarter, driven by strong demand for its memory chips. The company’s strong performance was driven by robust demand for its DRAM and NAND flash memory chips, which are used in a wide range of electronic devices.
Overall, the strong earnings from Nvidia and other chip makers in the Asian region have bolstered expectations of booming global demand for semiconductors used in artificial intelligence, data centers, smartphones, and other electronic devices. This bodes well for the entire semiconductor industry in Asia, as companies continue to invest in advanced semiconductor technology to meet the growing demand for chips. Investors are optimistic about the growth prospects of Asian chip makers, as they continue to benefit from the strong demand for semiconductors in the global market.