© Reuters.
Investing.com – Major Asian chip and technology stocks surged sharply today. This was due to better-than-expected results from TSMC, and at the same time the company also signaled a positive trend in AI demand.
Taiwan Semiconductor Manufacturing Corp (TW:) (NYSE:) rose more than 5% in the Taiwan market to its highest level in nearly two years. After fourth quarter results fell less than expected
CEO CC Wei said Thursday that TSMC is well positioned to take advantage of the rapid growth in artificial intelligence development in the coming year. and see better demand for the latest chips
“We expect 2024 to be a year of strong growth for TSMC, supported by […] Requirements related to strong AI AI models need to be supported by more powerful semiconductor hardware. […] Therefore, the value of TSMC’s technology position is increasing,” Wei said in a telephone interview.
His comments spurred today’s purchases of several Asian chip manufacturing stocks, South Korea’s Samsung Electronics Co Ltd (KS:43433}) and SK Hynix Inc (KS:), which makes memory chips. Memory used for AI processing increased by more than 3%.
Japan’s Advantest Corp. (TYO:), which manufactures semiconductor testing equipment. rose more than 8%, while chipmaker Tokyo Electron Ltd. (TYO:8035}) rose nearly 5%. China’s Semiconductor Manufacturing International Co, or SMIC, rose nearly 3% in Hong Kong.
Major chip companies in the United States Nvidia also rebounded on Thursday on TSMC’s outlook, with NVIDIA Corporation (NASDAQ:), at the heart of demand for AI-powered chips, up nearly 2% a day earlier. Nvidia clocked quarterly revenue of higher than forecast Because it is backed by AI-driven demand.
TMSC’s outlook fuels hopes that increased interest in AI development will help offset a nearly two-year slump in the tech industry. This is due to high interest rates and declining interest in consumer electronics.
The AI surge started with the launch of OpenAI’s Chat GPT tool in late 2022, prompting major tech companies to rush to offer similar products of their own. Speculation about possible applications for generative AI is also fueling more interest in the sector.
Growing Uncertainty About U.S. Interest Rates As a result, most major technology stocks are off to a weak start to 2024. Due to signs of US inflation The prolonged labor market and the strength of the labor market are raising doubts about whether the Federal Reserve will begin cutting interest rates in early 2024.
However, technology stocks are expected to benefit in 2024 from the start of an eventual Fed rate cut cycle. Although the timing and number of interest rate cuts remain unclear.
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2024-01-19 12:41:17
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