C. C. Wei, chief executive officer of Taiwan Semiconductor Manufacturing Co. (TSMC), left, and Jensen Huang, chief executive officer of Nvidia Corp., during the TSMC sports day event in Hsinchu, Taiwan, on Saturday, Nov. 8, 2025.
Asian chip stocks rallied in early trading Thursday after American AI chip darling Nvidia posted strong third quarter earnings, in a sign that AI bubble concerns aren't slowing down the AI industry.
South Korea's SK Hynix popped around 4%. The memory chip maker is Nvidia's top supplier of high-bandwidth memory used in AI applications.
Samsung Electronics , which also supplies Nvidia with memory, was up nearly 4%. The company has been working to catch up to SK Hynix in high-bandwidth memory to land more contracts with Nvidia.
Taiwan Semiconductor Manufacturing Company , the world's largest contract chipmaker, which produces most of Nvidia's chip designs, rose 4% in Taipei. Hon Hai Precision Industry — also known as Foxconn, and manufacturer of server racks designed for AI workloads — climbed 3.28%.
The Asian chip giants' rally comes after Nvidia's earnings topped Wall Street expectations on Wednesday, with the company providing a stronger-than-expected sales guidance for the fourth quarter.
Nvidia's sales and outlook are closely watched by the technology industry as a sign of the health of the AI boom, and its earnings come against the backdrop of recent market fears regarding an AI bubble.
However, the company's strong results and forecasts should ease immediate AI bubble concerns, Rolf Bulk, equity research analyst at New Street Research, told CNBC.
"Demand is diversified, with AI-native companies deploying agentic AI solutions, and enterprises increasingly integrating AI across their existing products and services," Bulk said.
"We expect Nvidia's results to drive higher earnings estimates across the sector, including for its primary GPU supplier TSMC, memory vendors SK Hynix and Samsung, and the broader Asian subcomponent and assembly value chain," he added.
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