(Bloomberg) -- Asian semiconductor stocks got a fresh boost from a stellar set of results from Nvidia Corp., the standard bearer of the artificial intelligence theme that propelled gains in the sector earlier this year.
The Bloomberg Asia Pacific Semiconductors Index climbed as much as 2.5%, the most since July 11, in early trading Thursday. Gains were led by two Nvidia suppliers seen as among the region’s biggest beneficiaries of the AI boom, South Korea’s SK Hynix Inc. and Japan’s Advantest Corp., which jumped at least 5% each. Taiwan Semiconductor Manufacturing Co. rose 2%.
Nvidia’s results for the latest quarter and its outlook for the current period trumped analyst expectations on a surge in demand for its AI processors. The emerging technology helped the US chipmaker overcome a slump in more traditional semiconductor business, thrusting its share price to more than triple its value so far in 2023.
The blowout results sent Nvidia shares soaring 10% in extended US trading. The jump provided a fresh tailwind for Asian chip stocks, helping the Bloomberg Asia chip gauge pare declines from a June high. The measure is still up 19% year to date.
“Nvidia’s post-market surge is favorable,” 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.”
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