Asian semiconductor stocks rose after shares of AI chip darling Nvidia hit a record high

Asian chip stocks rose later on Tuesday Nvidia Chip companies closed at record highs overnight as they continued to ride the massive artificial intelligence wave.

Stocks linked to Nvidia suppliers advanced as well as other chip companies as bullish investor sentiment spread. Shares in South Korean chipmaker SK Hynix, which makes high-bandwidth memory chips for AI applications for Nvidia, rose 2.5%.

Shares in Samsung Electronics, which is expected to make HBM chips for some Nvidia products, rose 0.5%.

share of Taiwan Semiconductor Manufacturing Company And Be hi precision art — internationally known as Foxconn — which is part of the Nvidia supply chain, jumped about 2% and 2.5%, respectively.

Japanese semiconductor manufacturing company Tokyo Electron 5% increase, test equipment suppliers Adventist gained 3.6% and Renesas Electronics increased by over 4%.

Japanese technology conglomerate Softbank Groupwhich owns a part of the chip designer armjumped as much as 6.4%.

overnight on wall street, Nvidia Shares closed up 2.4% at $138.07, surpassing their June 18 high of $135.58. Raised its market value to $3.4 trillion, unconsolidated Microsoft As the second most valuable company after Wall Street apple.

Nvidia shares rose on Monday as Wall Street heads into earnings season. Most of the chipmakers' top customers have unveiled technologies and products that require heavy investment in Nvidia's graphics processing units, or GPUs.

US tech giants Microsoft, Meta, Google and Amazon are buying large quantities of Nvidia GPUs to build growing clusters of computers for their advanced AI work. These companies are set to report quarterly results by the end of October.

A sharp rise in Nvidia shares helped recover earlier losses after the company's second-quarter earnings. Shares of Nvidia plunged in late August despite revenue topping analysts' expectations but gross margins shrinking.

Nvidia shares are now up nearly 180% this year.