Key Moments
- NVIDIA Corp’s (NASDAQ: NVDA) upbeat artificial intelligence demand outlook lifted shares of several Asian suppliers.
- Japanese chip-related stocks advanced between 2% and 7%, with SUMCO Corp. gaining additional support from a UBS rating upgrade to Neutral from Sell.
- South Korean chipmakers retreated following sharp prior-session rallies, even as negotiations continued at Samsung Electronics Co Ltd (KS: 005930) after it narrowly avoided a major strike.
AI Optimism Fuels Broad-Based Gains in Asia
Shares of NVIDIA Corp’s (NASDAQ: NVDA) key Asian partners extended their advance on Friday, as investors responded positively to the company’s constructive outlook on artificial intelligence-driven demand.
Supportive remarks from AMD (NASDAQ: AMD) CEO Lisa Su, who pointed to robust demand for AI, further strengthened risk appetite toward chip-related names, including component manufacturers, specialty chemical producers, and electronics makers.
Performance of Major Asian Nvidia and AMD Suppliers
In Taiwan, TSMC (TW: 2330) – the largest contract chip manufacturer globally and a core supplier to both Nvidia and AMD – gained 0.2% in Taipei trading, adding to an increase of over 3% in the previous session. Contract electronics producer Hon Hai Precision Industry Co Ltd (TW: 2317), better known as Foxconn, advanced 0.8%.
Japanese names were among the strongest performers. Murata Mfg Co (TYO: 6981), SUMCO Corp. (TYO: 3436), Shin-Etsu Chemical Co., Ltd. (TYO: 4063) and Ibiden Co Ltd (TYO: 4062) rallied in a range of 2% to 7%. SUMCO also drew support from a UBS upgrade, with the brokerage lifting its rating on the stock to Neutral from Sell.
| Company | Exchange / Ticker | Move Described | Notable Detail |
|---|---|---|---|
| TSMC | TW: 2330 | Up 0.2% | Gained over 3% in the prior session |
| Hon Hai Precision Industry Co Ltd (Foxconn) | TW: 2317 | Up 0.8% | Contract electronics manufacturer |
| Murata Mfg Co | TYO: 6981 | Up between 2% and 7% (group range) | Japanese supplier |
| SUMCO Corp. | TYO: 3436 | Up between 2% and 7% (group range) | UBS upgrade to Neutral from Sell |
| Shin-Etsu Chemical Co., Ltd. | TYO: 4063 | Up between 2% and 7% (group range) | Japanese specialty chemical producer |
| Ibiden Co Ltd | TYO: 4062 | Up between 2% and 7% (group range) | Japanese supplier |
| Samsung Electronics Co Ltd | KS: 005930 | Down 2% | Had rallied nearly 9% in the prior session |
| SK Hynix Inc | KS: 000660 | Down 0.2% | Pullback after strong prior-session rally |
South Korean Chipmakers Pull Back After Sharp Rallies
In South Korea, the sector lagged the broader regional strength. Samsung Electronics Co Ltd (KS: 005930) declined 2%, giving back part of a nearly 9% surge in the earlier session. The move came after the company narrowly avoided a large-scale strike in South Korea, while talks with its biggest domestic union remained in progress.
Peer SK Hynix Inc (KS: 000660) slipped 0.2%, also easing following a substantial jump in the prior trading day.
Nvidia’s Earnings and AI Demand Outlook Underpin Sector
Nvidia reported first quarter results earlier this week that exceeded market expectations. The company also indicated that chip demand from the broader industry showed continued resilience.
Although Nvidia’s own share price underperformed on Thursday, its constructive guidance on artificial intelligence-related demand pointed to an ongoing, AI-driven growth trend for the semiconductor space, a development that is seen as supportive for its global supplier base.
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