By Jiahui Huang
Asian semiconductor stocks surged after U.S. chip makers spurred record highs on Wall Street overnight, refueling investor appetite for exposure to artificial intelligence.
The U.S. rally came after robust earnings and guidance from Advanced Micro Devices buoyed sentiment toward companies making the chips and technology powering the AI boom.
Hopes of easing tensions in the Middle East added to the risk-on mood.
The momentum spilled over into chip stocks across South Korea, China, Hong Kong and Taiwan on Wednesday, led by Samsung Electronics, one of the world's largest chip makers.
Shares of Samsung jumped 13% in morning trade in Seoul, pushing its market value past the $1 trillion mark for the first time. Fellow chip maker and Nvidia supplier SK Hynix climbed too, rising 11% to a new record high.
"The AI revolution will translate into trillions being spent over the coming years for well-positioned tech winners," Wedbush analysts said in a note.
Continued growth in AI infrastructure depends heavily on Asia's production capacity, Saxo Markets strategist Charu Chanana said in a recent note.
Taiwan's manufacturing capacity, Korea's dominance in memory chips and Japan's strength in semiconductor equipment and materials have been crucial to enabling the current phase of the AI boom, she added.
In Hong Kong, Semiconductor Manufacturing International Corp., China's largest chip maker, advanced more than 10%. Hua Hong Semiconductor soared 12% and Montage Technology added 18%.
AI chip firm Cambricon Technologies climbed 13% in Shanghai.
In Taiwan, United Microelectronics rose 7% while Samsung rival Taiwan Semiconductor Manufacturing Co. was 0.4% higher.
--Kwanwoo Jun contributed to the article.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
05-06-26 0109ET
