AI and semiconductor stocks rose after Nvidia posted earnings

Shares in artificial intelligence and semiconductor chips rose after the US chip design firm Nvidia beat Wall Street expectations for fourth-quarter profit and revenue on Wednesday and forecast “continued growth” in 2025 and beyond.

Nvidia supplier A Taiwanese semiconductor manufacturing company jumped as much as 2.05% in Thursday morning trading. TSMC is the world’s largest contract chip maker and makes advanced processors for companies such as Nvidia and the iPhone maker An apple.

Server component vendor shares Super micro computer rose 11.42% in after-hours trading on Wednesday. Dutch chip equipment manufacturer ASMLwhich supplies TSMC lithography machines critical to chip production, jumped 2.7 percent in the U.S. in after-hours trading.

Following Nvidia’s earnings report, competitors Advanced Micro Devices and SoftBank-backed British chip designer Arm Holdings rose 4.08% and 7.87%, respectively, in after-hours trade.

Nvidia, which designs custom AI chips for Amazon, Microsoft and Google, has seen demand for its GPUs surge thanks to the AI ​​boom.

OpenAI’s ChatGPT, which gained massive global popularity in November 2022 for its ability to generate human responses to user prompts, is trained and runs on thousands of Nvidia GPUs. Shares of Nvidia rose 9% in extended trading.

South Korean memory chipmakers Samsung Electronics and SK Hynix gained 0.41 percent and 3.22 percent, respectively, on Thursday. Large language models like ChatGPT rely on high-performance memory chips to remember details of past conversations and user preferences to generate human responses.

Other Taiwanese semiconductor companies Orient Semiconductor Electronics and MediaTek rose 2.94 percent and 1.53 percent respectively on Thursday.

Intel, Broadcom and Qualcommthree U.S. chipmakers saw gains in their share prices in extended trading on Wednesday, rising 1.38%, 2.79% and 1.80%, respectively.

“Essentially, the conditions are excellent for continued growth” into 2025 and beyond, Nvidia Chief Executive Jensen Huang told analysts on Wednesday on an earnings call. He added that demand for Nvidia’s GPUs will remain high because of generative AI and the industry-wide shift from CPUs to accelerators that Nvidia makes.

“If I was just going to put a stake in the ground in terms of the conversation, whether it’s market share or their margins, I think they would surprise people,” Gene Munster, managing partner of Deepwater Asset Management, told the Street Signs Asia’ on CNBC on Thursday.