Asian suppliers tied to Nvidia saw further gains on Friday as investors reacted to the chipmaker's upbeat view on demand fueled by artificial intelligence. Market sentiment received an additional lift from positive remarks by AMD chief executive Lisa Su about robust AI demand, helping stocks with chipmaking exposure.
Chip components, specialty chemical producers and electronics manufacturers were among the beneficiaries of the improved outlook for AI-related semiconductor consumption.
Movements by market and company
In Taipei, TSMC (TW:2330), the world's largest contract chip manufacturer and a key supplier to both Nvidia and AMD, rose 0.2% on Friday after jumping more than 3% in the previous trading session. Contract electronics assembler Hon Hai Precision Industry Co Ltd (TW:2317), also known as Foxconn, gained 0.8%.
Japanese suppliers outperformed in the session. Murata Manufacturing Co (TYO:6981), SUMCO Corp. (TYO:3436), Shin-Etsu Chemical Co., Ltd. (TYO:4063) and Ibiden Co Ltd (TYO:4062) climbed between about 2% and 7%. SUMCO in particular was supported by a ratings change at UBS, which upgraded the stock to Neutral from Sell.
South Korean names lagged the broader regional advance. Samsung Electronics Co Ltd (KS:005930) declined 2% after having surged nearly 9% in the prior session; the company had narrowly averted a major strike, and negotiations with its largest union in South Korea remained ongoing. SK Hynix Inc (KS:000660) slipped 0.2%, retreating after a strong rally in the earlier session.
Context on Nvidia
Nvidia reported first-quarter results earlier in the week that exceeded expectations, and it flagged continued resilience in chip demand across the industry. The company's upbeat guidance has been read as a positive signal for its supply chain, even though Nvidia's shares themselves were weaker on Thursday.
Implications for markets
- Suppliers of components and materials used in chip production saw share-price gains on hopes of sustained AI-driven orders.
- Investor focus remains on companies closely linked to major chipmakers, with both stock moves and analyst actions influencing momentum.
- Labor and operational developments at large manufacturers continue to affect stock performance, particularly for South Korean firms.
The market reaction shows a continued linkage between demand signals from large AI chip customers and short-term performance among their regional suppliers.