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Asian tech stocks rallied in early trading on Thursday as stronger-than-expected results from Nvidia eased concerns that momentum in artificial intelligence sector was cooling.
Shares of South Korean chipmaking giants Samsung Electronics and SK Hynix jumped in early trade.
SK Hynix, which is a key supplier of high-bandwidth memory used in AI applications to Nvidia, rose over 2%. Samsung Electronics, which has been a decades-old partner of Nvidia, was up about 5%.
“This is a positive read through for many of the Asia supply chain players including SK Hynix, Samsung, and many others given the explosion of data center demand,” said Dan Ives, senior equity research analyst at Wedbush Securities.
