### Surge in AI and Semiconductor Stocks Following Nvidia’s Impressive Earnings Beat

Following Nvidia’s surpassing of Wall Street’s expectations for earnings and revenue on Wednesday, Nvidia supplier Taiwan Semiconductor Manufacturing Company (TSMC) experienced a 2.05% surge in Thursday morning trade. TSMC, renowned as the world’s largest contract chip maker, is responsible for producing cutting-edge processors for industry giants like Nvidia and Apple, the maker of iPhones.

Concurrently, shares of server component supplier Super Micro Computer soared by 11.42% during Wednesday’s after-hours trading session. Similarly, Dutch chip equipment manufacturer ASML, a crucial supplier of lithography machines to TSMC for chip production, witnessed a 2.7% increase in after-hours trading in the U.S.

Noteworthy competitors in the semiconductor industry, Advanced Micro Devices and U.K.-based chip designer Arm Holdings (backed by SoftBank), experienced significant gains of 4.08% and 7.87%, respectively, during after-hours trading following Nvidia’s earnings announcement.

Nvidia, acclaimed for its tailored AI chip designs utilized by tech giants such as Amazon, Microsoft, and Google, observed a surge in demand for its graphics processing units, largely driven by the AI revolution.

OpenAI’s ChatGPT, renowned for its human-like response generation capabilities, relies heavily on Nvidia’s GPUs for training and operation. This dependency led to a notable 9% increase in Nvidia’s shares during extended trading.

South Korea’s leading memory chip manufacturers, Samsung Electronics and SK Hynix, witnessed increases of 0.41% and 3.22%, respectively, on Thursday. These memory chips play a pivotal role in supporting large language models like ChatGPT by retaining information from previous interactions to generate more human-like responses.

Additionally, Taiwanese semiconductor companies Orient Semiconductor Electronics and MediaTek saw respective increases of 2.94% and 1.53% on Thursday.

In the U.S. market, chip giants Intel, Broadcom, and Qualcomm experienced share price surges in after-hours trading on Wednesday, with gains of 1.38%, 2.79%, and 1.80%, respectively.

Nvidia’s CEO Jensen Huang expressed optimism regarding the company’s future growth prospects during an earnings call, citing sustained high demand for Nvidia GPUs driven by generative AI and the industry’s shift towards accelerators over central processors.

Gene Munster, managing partner of Deepwater Asset Management, shared his positive outlook on Nvidia’s performance, anticipating potential surprises in market share and margins during an interview with CNBC’s “Street Signs Asia” on Thursday.