Asian Chip Stocks Surge as Nvidia, AI Investments Fuel Rally

Asian semiconductor stocks climbed Thursday, following a strong rally in Nvidia (NASDAQ:NVDA) after major tech firms, including Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and Meta (NASDAQ:META), projected higher AI-related capital spending in 2025. These forecasts bolstered expectations for continued demand for high-end chips, lifting Nvidia’s stock over 5% overnight.

Taiwan Semiconductor Manufacturing Company (TSMC) (TW:2330) (NYSE:TSM), Nvidia’s key supplier, gained 0.5% after its U.S. shares surged over 2%. South Korean memory chip leaders Samsung Electronics (KS:005930) and SK Hynix (KS:000660), along with Japan’s Advantest Corp. (TYO:6857), saw gains between 1% and 2%. Foxconn (TW:2317), a key Apple and Nvidia supplier, edged up 0.3%.

Nvidia’s recent launch of its Blackwell AI chips reinforced its dominance in the AI semiconductor market, driving further investor optimism. The firm remains a bellwether for AI chip demand, benefiting from surging investments in AI-driven infrastructure.

In China, chipmakers extended a rally fueled by the release of DeepSeek R1, an AI breakthrough boosting confidence in the nation’s AI sector despite U.S. chip export restrictions. Semiconductor Manufacturing International Corp (HK:0981) surged 4% to a record high in Hong Kong, while Sunny Optical Technology Group Co Ltd (HK:2382) jumped 5.5%. Investors are betting that China's AI advancements will sustain local chip demand.

However, broader chip sector gains were tempered by weak earnings guidance from Qualcomm (NASDAQ:QCOM) and Arm (NASDAQ:ARM), which, despite beating December-quarter expectations, issued underwhelming forecasts for 2025, leading to sharp after-hours stock declines.

With AI adoption accelerating and tech giants ramping up AI-related investments, semiconductor stocks remain a focal point for investors betting on the future of AI-driven computing.