Krakow, Poland – In a recent surge after hours of trading, various technology companies experienced notable increases in their stock prices. Nvidia, a company that designs AI chips for major tech giants such as Amazon, Microsoft, and Google, reported a significant rise in demand for its graphics processing units. This spike in demand is largely attributed to the ongoing AI boom.
Following Nvidia’s earnings report, server component supplier Super Micro Computer saw an 11.42% increase in its stock price. Similarly, Dutch chip equipment manufacturer ASML, a critical supplier of TSMC lithography machines for chip making, also experienced a jump of 2.7% in after hours trading in the U.S.
Nvidia’s rivals, Advanced Micro Devices and the SoftBank-backed U.K. chip designer Arm Holdings, also saw significant increases in their stock prices after Nvidia’s report. Advanced Micro Devices surged by 4.08%, while Arm Holdings climbed by 7.87% during after hours trading.
Nvidia’s success is further showcased through its impact on other companies. OpenAI’s ChatGPT, a widely popular language model, relies on thousands of Nvidia’s GPUs for its operations, resulting in a 9% increase in Nvidia’s stock price in extended trading. The demand for high-performance memory chips, such as those produced by South Korea’s memory chipmakers Samsung Electronics and SK Hynix, also saw a boost as large language models like ChatGPT require such chips to generate human-like responses.
In addition to Nvidia, other major semiconductor firms such as Intel, Broadcom, and Qualcomm, all experienced increases in their share prices in after hours trading.
Nvidia’s CEO, Jensen Huang, expressed optimism about the company’s future growth and demand for its GPUs due to generative AI and a shift in the industry towards the accelerators that Nvidia produces. This positive outlook was also echoed by Gene Munster, managing partner of Deepwater Asset Management, who expressed confidence in Nvidia’s potential to surprise investors in terms of market share and margins.
Overall, the recent surge in stock prices for various technology companies reflects the growing demand for AI chips and related technologies in the global market.