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Asian Chipmaking Stocks Surge Following Nvidia’s Rebound

Asian chipmaking stocks experienced gains on Wednesday, buoyed by a rebound in Nvidia, a leading player in artificial intelligence (AI) technology. Nvidia (NASDAQ:NVDA) saw a nearly 7% surge in Tuesday’s session, recovering from several days of steep losses driven by profit-taking and cooling market sentiment.

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Shares closely linked to Nvidia were among the top performers in the sector. South Korea’s SK Hynix Inc (KS:000660), a supplier of advanced memory chips to Nvidia, rose 4.2%, while Japanese semiconductor testing equipment maker Advantest Corp. (TYO:6857), also a Nvidia supplier, gained 6.6%.

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TSMC (TW:2330) (NYSE:TSM), the world’s largest contract chipmaker and a major supplier to Nvidia, saw a 1.1% increase. Meanwhile, Hon Hai Precision Industry Co Ltd (TW:2317), known as Foxconn, added 0.5%.

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Nvidia’s rebound reaffirmed market optimism, pushing its market capitalization back towards $3 trillion. Investors remain bullish on Nvidia’s prospects amid expectations of increased demand driven by AI technologies.

Last week, Nvidia briefly surpassed Microsoft Corporation (NASDAQ:MSFT) to become the most valuable company on Wall Street, highlighting the hype surrounding AI technologies.

The anticipated growth in AI applications is expected to drive global chip demand, contributing to broader gains in Asian chip stocks on Wednesday. Semiconductor Manufacturing International Corp (HK:0981), China’s largest chipmaker, rose 1%, while Tokyo Electron Ltd. (TYO:8035) and Renesas Electronics Corp (TYO:6723) increased by 3.2% and 2%, respectively.

Investors are now focused on Micron Technology Inc (NASDAQ:MU), which is set to report its quarterly earnings later on Wednesday. Micron’s previous quarter results exceeded expectations, with a strong outlook driven by robust demand trends in the semiconductor market.

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