- Nvidia’s $100B OpenAI investment drives global semiconductor stock surge.
- Asian chipmakers TSMC, SK Hynix, and Samsung lead gains.
- European markets show mixed results, but AI demand outlook stays strong.
Global semiconductor stocks surged on Tuesday after Nvidia unveiled plans to invest $100 billion in OpenAI, fueling optimism across the AI and chipmaking sectors. The move highlights both the scale of AI infrastructure demand and the ripple effect Nvidia’s partnerships have on the broader semiconductor supply chain.
Nvidia’s Mega Investment Boosts AI Ambitions
Nvidia CEO Jensen Huang revealed that OpenAI will deploy Nvidia systems requiring 10 gigawatts of power — the equivalent of between 4 million and 5 million GPUs. The announcement sent a clear signal to markets that AI development is accelerating at an unprecedented pace, with Nvidia playing a central role in supplying the hardware backbone.
Chipmakers in Asia Lead Gains
The news triggered strong buying activity in Asia. Taiwan Semiconductor Manufacturing Co. (TSMC), which produces chips for Nvidia, climbed 3.5%. South Korea’s SK Hynix, a key memory supplier, rose over 2.5%, while Samsung added 1.4% on hopes it could soon supply high-bandwidth memory to Nvidia. Japanese equipment maker Tokyo Electron also closed higher, reflecting investor belief that demand for AI-related hardware will extend throughout the supply chain.
Mixed Picture in Europe
European chipmakers initially joined the rally, with STMicro, Infineon, and BE Semiconductor edging higher. However, ASM International’s weaker-than-expected revenue outlook weighed on shares and dragged down peers such as ASML. Still, analysts argue the long-term outlook remains positive. “This is not a zero-sum game,” said Ben Barringer of Quilter Cheviot, noting that AI growth will benefit a wide range of suppliers over time.
Also Read: Nvidia Commits £2B to U.K. AI Startups, Eyes $500M Investment in Wayve
The scale of Nvidia’s commitment to OpenAI underlines how much capital is flowing into AI infrastructure. While short-term winners and losers will emerge, the broader industry appears set for sustained growth. For investors, the rally serves as a reminder: the AI trade is far from over.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
