Asian chipmaking technology stocks rose after TSMC forecast demand for artificial intelligence

Investing.com – Shares of Asian chip and technology companies rose sharply today. This was due to the better-than-expected results achieved by TSMC, at the same time the company also indicated a positive trend in demand for artificial intelligence.

Taiwan Semiconductor Manufacturing Company (TW:) (NYSE:) rose more than 5% in the Taiwan market to its highest level in almost two years. After the fourth quarter results declined less than expected

CEO CC Wei said Thursday that TSMC is well positioned to benefit from rapid growth in artificial intelligence development in the coming year. And we're seeing better demand for the latest chips

“We expect 2024 to be a year of strong growth for TSMC, supported by… […] Requirements for powerful AI models must be supported by more powerful semiconductor devices. […] “Therefore, the value of TSMC's technology position is increasing,” Wei said in a phone interview.

His comments prompted today's buying of several Asian chipmaking stocks: South Korea's Samsung Electronics Co Ltd (KS:{43433|005930}}) and Samsung Electronics Co Ltd (KS:{43433|005930}}). SK Hynix Company (KS:), whose production of memory chips used in artificial intelligence processing increased by more than 3%.

Advantest Company Japanese (TYO:), which produces semiconductor testing equipment. Chipmaker Tokyo Electron Co., Ltd. (TYO:{44237|8035}}) rose nearly 5%, and China Semiconductor Manufacturing International Co. (SMIC) rose nearly 3% in Hong Kong.

Major U.S. chip companies Nvidia also rebounded Thursday thanks to TSMC forecasts, with NVIDIA Corporation (NASDAQ:), which is at the heart of demand for AI-powered chips, rising nearly 2% the day before. Nvidia posted quarterly revenue Higher than expected because it is supported by AI-driven demand.

TMSC's forecast fuels hopes that growing interest in developing artificial intelligence will help offset a nearly two-year slump in the technology industry. This is due to high interest rates and low interest in consumer electronics.

The AI ​​boom began with the launch of OpenAI's Chat GPT tool in late 2022, prompting major tech companies to rush to introduce similar products of their own. Speculation about the potential applications of generative AI is also sparking further interest in this sector.

Growing uncertainty about US interest rates and as a result, most big tech stocks will get off to a weak start through 2024. Signs of inflation in the US and a long and strong labor market raise doubts about whether the Federal Reserve will start cutting interest rates in early 2024. 2024.

However, technology stocks are expected to benefit in 2024 from the start of an eventual Fed rate cutting cycle. Although the timing and number of interest rate cuts remains unclear.

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