Nvidia Provides Positive Outlook On AI
Following an overnight spike in the graphics card manufacturer due to good first-quarter earnings and a positive view on chip demand amid increased interest in artificial intelligence, shares of major Asian Nvidia Corp suppliers climbed substantially on Thursday.
Japan’s Advantest Corp, which provides Nvidia with semiconductor testing technology, was one of the day’s top performers, rising 16% to a record high.
Taiwan Semiconductor Manufacturing Corp, the world’s largest chipmaker by production and a significant Nvidia supplier, increased by more than 3% as well, and SK Hynix Inc. of South Korea increased by about 5%.
As the most valuable chipmaker in the world reported a better-than-anticipated first-quarter profit, Nvidia shares increased by roughly 25% in after-hours trade. The company also predicted stronger-than-anticipated revenue for the second quarter, citing higher demand from AI development.
The company is experiencing a spike in demand for its data centre chips, which are vital to powering the AI technology that has seen a considerable rise in popularity in recent years. By using historical data to generate new text, image, and programming content, generative AI is used by technologies like as OpenAI’s ChatGPT.
(With inputs from Shikha Singh)
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