A man wearing a mask walks past the Nvidia sign in Taipei, Taiwan.
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Asian chip stocks rise on Tuesday NVIDIA Prices closed at a record high overnight as the chip company continues to ride the massive artificial intelligence wave.
Stocks related to Nvidia suppliers and other chip companies rose as bullish investor sentiment spread. Shares of South Korean chipmaker SK Hynix, which produces high-bandwidth memory chips for Nvidia for artificial intelligence applications, surged 2.5%.
Samsung Electronics, Expected to produce HBM wafers Shares of some of Nvidia’s products rose 0.5%.
shares British Semiconductor and Hon Hai Precision Industry The company known internationally as Foxconn, which is part of Nvidia’s supply chain, saw its shares rise about 2% and 2.5%, respectively.
Japan Semiconductor Manufacturing Company Tokyo Electronics Soared 5%, detection equipment supplier Advant test up 3.6% Renesas Electronics An increase of more than 4%.
Japan Technology Group SoftBank Groupowns shares in chip design company arman increase of 6.4%.
rise to prominence
Overnight on Wall Street, NVIDIA Shares rose 2.4% to close at $138.07, surpassing the high of $135.58 on June 18. Raising its market capitalization to $3.4 trillion, replacing Microsoft As Wall Street’s second most valuable company apple.
Nvidia shares soared on Monday as Wall Street entered 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).
Big US tech companies Microsoft, Meta, Google and Amazon have been buying up Nvidia’s GPUs in large quantities to build growing clusters of computers for their advanced artificial intelligence work. The companies will report quarterly results at the end of October.
A rapid rise in Nvidia’s stock price helped it recoup early losses after posting a profit in the second quarter. Nvidia’s stock price fell in late August even though its profit beat analysts’ expectations and its gross margin fell.
Nvidia shares have risen nearly 180% this year.
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