Major global semiconductor stocks rose on Tuesday after Nvidia announced plans to invest $100 billion in OpenAI.
The deal between Nvidia and OpenAI is on a large scale. OpenAI plans to build and deploy Nvidia systems that require 10 gigawatts of power, which is equivalent to 4 million and 5 million graphics processing units (GPUs), according to Nvidia CEO Jensen Huang.
The news sparked a rally on Wall Street, with positive sentiment flowing through to the global chip sector and especially touching companies with ties to Nvidia.
In Taiwan, shares of Taiwan Semiconductor Manufacturing Co. , which manufactures chips for Nvidia, closed 3.5% higher.
In South Korea, SK Hynix, whose memory chips are used in Nvidia's systems, saw its shares end the session more than 2.5% higher. Rival Samsung also closed 1.4% higher. Samsung does not yet supply Nvidia with its high-bandwidth memory chips, but markets are hoping that the company will gain the green light to do so imminently.
Equipment suppliers, such as Tokyo Electron which is listed in Japan, was also higher at the close of trade in the country.
"Ultimately this is a broad market with lots of suppliers. It certainly isn't a zero-sum game with only one winner, and indeed it appears investors are recognising that," Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC.
"While this deal may be negative in the short-term for Nvidia's competitors, it is a sign that the AI trade is a alive and well."