AI Demand Sparks Rally in Asian Chip-Related Shares
The tech sector is abuzz with excitement as Nvidia Corp.’s CEO Jensen Huang unveiled a slew of innovative products featuring the company’s cutting-edge Blackwell chips at the prestigious CES trade show in Las Vegas. This move has reignited optimism over artificial intelligence (AI) demand, sending Asian chip-related shares soaring.
Japanese Chip Gear Suppliers Lead the Charge
In Japan, shares of Tokyo Electron Ltd., Advantest Corp., Disco Corp., and Lasertec Corp. surged by at least 6%, with investors betting big on the potential of AI-driven growth. These companies supply chip gear to Nvidia, and their stocks have been heavily sold during year-end position adjustments, making them prime beneficiaries of the current tech rally.
Taiwanese Partners Also See Gains
Meanwhile, in Taiwan, Hon Hai Precision Industry Co., Nvidia’s assembly partner, climbed as much as 4.1%, while Taiwan Semiconductor Manufacturing Co. rose by up to 3.1%. The gains are a testament to the growing demand for AI-powered products and services.
Toyota Joins the AI Bandwagon
In a significant development, Huang announced that Toyota Motor Corp. will be a customer for Nvidia’s autonomous driving AI products. This news sent Toyota’s shares jumping by as much as 3.9%, extending their morning gains. The automaker plans to open its futuristic Woven City near Mt. Fuji later this year, further fueling excitement around AI-driven innovation.
Nvidia’s Blackwell Chip Design Takes Center Stage
Huang’s keynote address at CES showcased new graphics cards for gaming PCs built on Nvidia’s Blackwell chip design, as well as software to aid companies in developing autonomous driving and robotics AI. This move has further boosted the tech sector, which has been receiving a significant influx of public and private investment into AI infrastructure.
Analysts Weigh In
According to Andrew Jackson, an analyst at Ortus Advisors Pte, “There’s been some great AI-supportive newsflow to start the year.” He believes that Japanese chip gear makers, in particular, are poised to benefit from the ongoing tech rally. Jackson also expects Ibiden Co., a Japanese chip package substrate maker that supplies Nvidia, to see significant gains from Huang’s plans to “roll out Blackwell at massive scale.” Ibiden’s shares rose by as much as 7.7% on Tuesday, the most since November 5.
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