Major global semiconductor stocks experienced a surge on Tuesday following Nvidia’s announcement of a $100 billion investment in OpenAI. This deal will enable the AI lab to develop systems requiring 10 gigawatts of power, equivalent to 4-5 million GPUs, according to Nvidia CEO Jensen Huang. The news positively impacted Wall Street, boosting investor sentiment particularly for Nvidia-linked companies. In Taiwan, Taiwan Semiconductor Manufacturing Co. shares rose by 3.5%, while South Korea’s SK Hynix gained over 2.5%. Despite not currently supplying Nvidia, Samsung shares climbed 1.4% amid expectations of future collaboration. Analysts suggest that this thriving AI ecosystem benefits multiple companies, not just Nvidia, with robust demand anticipated for semiconductor equipment suppliers like ASML and Tokyo Electron. In Europe, while companies like STMicro and Infineon saw early gains, ASM International warned of disappointing fourth-quarter revenues, dragging down sector stocks. This highlights the interconnected nature of the semiconductor market amid growing AI investments.
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