Nvidia’s strong results amid high AI hopes sends Asian chip stocks soaring, with SK Hynix and TSMC seeing gains
- Suppliers including South Korea’s SK Hynix, Japan’s Advantest, and Taiwan’s TSMC saw shares jump after Nvidia announced results
- The AI chip maker beat saw revenue double in the June quarter to to US$13.5 billion, US$2.5 billion more than estimates
Asian semiconductor stocks got a fresh boost from a stellar set of results at Nvidia Corp, the standard bearer of the artificial intelligence (AI) theme that propelled gains in the sector earlier this year.
Nvidia’s results for the latest quarter and its outlook for the current period trumped analysts' expectations on a surge in demand for its AI processors. The emerging technology has helped the US chip maker overcome a slump in more traditional semiconductor business, and driven its share price to more than triple in value so far in 2023.
Nvidia said sales will be about US$16 billion in the three months ending in October. Analysts had estimated just US$12.5 billion, according to data compiled by Bloomberg. Nvidia’s results last quarter also blew past projections, and it approved an additional US$25 billion in stock buy-backs.
In the fiscal second quarter, which ended July 30, revenue doubled to US$13.5 billion, the company said. Profit was US$2.70 a share, minus certain items. Analysts had predicted sales of about US$11 billion and profit of US$2.07.
The latest blowout results sent Nvidia shares soaring 10 per cent in US post-market trading Wednesday. The jump provided a fresh tailwind for Asian chip stocks, helping the Bloomberg Asia chip gauge pare its decline from a June high. The measure is still up 19 per cent year to date.
“Nvidia’s post-market surge is favourable,” said Seo Sang Young, a strategist at Mirae Asset Securities Co. “It has raised expectations for the AI industry that it isn’t just a temporary theme.”
