Investing.com – Shares of Asian supplier Nvidia rose on Thursday on the prospect of robust demand from the artificial intelligence industry as the chipmaker posted better-than-expected quarterly earnings.
NVIDIA Corporation (NASDAQ:) hit a record high in the aftermarket after its first-quarter earnings beat expectations and also provided strong revenue guidance for the current quarter.
The firm also announced a 10-to-one stock split.
Nvidia’s stock gains extended to its Asian suppliers. SK Hyniks Inc. Shares of (KS:), which is a key supplier of memory chips to the company, rose 2.4%.
Samsung Electronics Co. Ltd. (KS:), which is also set to start supplying high-bandwidth memory chips to Nvidia, rose 0.9%.
In Taiwan, shares of contract chipmaker TSMC (TW:) (NYSE:), by far Nvidia’s largest supplier, rose 1.4%, while contract electronics maker Hong Hai Precision Industry Co Ltd (TW:), also known as Foxconn, added 1.6%.
Japan, manufacturer of semiconductor testing equipment. Advantest company. (TYO:), which is heavily dependent on Nvidia, added 3.5%.
Technology conglomerate SoftBank Group Corp. (TYO:) rose more than 3%, tracking growth in the aftermarket of its chip design division. Hand Holdings (NASDAQ:), which is also owned by Nvidia.
Nvidia’s strong earnings signaled that demand for chips driven by artificial intelligence remains strong and is likely to remain strong in the coming months as the industry grows.
The onslaught in generative artificial intelligence, sparked by the release of OpenAI ChatGPT in late November, has become a key demand driver for the chip industry, which has otherwise been struggling with an apparent slowdown in technology investment.