Asian Chip Makers Rally to New Heights as NVIDIA Touches 3 Trillion Valuation [Video]

Shares of major Asian chipmakers and suppliers to Nvidia rallied sharply on Thursday, riding on the coattails of the US chip giant’s surge to a $3 trillion market capitalisation.

Nvidia’s stock jumped on optimism about the booming demand for AI chips, overtaking Apple to become the world’s second-most valuable company after Microsoft.

Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker and a key Nvidia supplier, soared nearly 5% to a record high in Taiwan. China’s biggest chipmaker Semiconductor Manufacturing International Corp (SMIC) climbed 4% in Hong Kong, while Japan’s Tokyo Electron, the country’s most valuable chip firm, advanced 4.3%.

“Nvidia’s valuation milestone underscores the explosive growth potential in AI chips as tech giants race to launch more AI products,” said Rajiv Menon, an analyst at CLSA. “This is having a ripple effect across the semiconductor supply chain, lifting shares of Nvidia’s suppliers and rivals.”

Nvidia’s market value has …