Asian chip-related shares extended gains on expectations that Nvidia Corp. chief Jensen Huang would spark renewed optimism over AI demand during his speech at the CES trade show in Las Vegas.
In Japan, Nvidia chip gear suppliers Tokyo Electron Ltd., Advantest Corp., Disco Corp. and Lasertec Corp. all surged at least 6%. In Taiwan, Nvidia assembly partner Hon Hai Precision Industry Co. climbed as much as 4.1%, while Taiwan Semiconductor Manufacturing Co. rose as much as 3.1%.
Huang is set to take the CES stage Tuesday morning in Asia, shortly after Nvidia shares hit an all-time high. Investor attention is focused on remarks regarding the launch of the AI darling's Blackwell chip.
Huang has used such forums in the past to argue that AI has much more scope to expand throughout society. Consumers and tech businesses have embraced AI over the past two years, but the technology has yet to conclusively show it's beneficial for humanity.
The semiconductor-related sector is getting a boost from robust public and private investment into AI infrastructure. Microsoft Corp. last week announced plans to spend $80 billion on AI data centers this year, while Hon Hai reported better-than-expected sales growth last quarter.
“There's been some great AI-supportive newsflow to start the year,” said Andrew Jackson, an analyst at Ortus Advisors Pte. The recent tech rally is bolstering Japanese chip gear makers in particular as many were heavily sold during year-end position adjustments that favored momentum plays, he said. “It looks like semiconductor production equipment has legs here.”
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