Chipmaking and artificial intelligence-linked stocks in Japan and Taiwan rose on Tuesday, tracking an overnight rally in AMD after the firm entered a deal to supply AI processors to OpenAI.
TSMC (TW:2330), the world’s biggest contract chipmaker, rose 2.5% in Taipei trade, while electronics manufacturing giant Hon Hai Precision Industry Co Ltd (TW:2317) added 1.1%.
In Japan, chip stocks Renesas Electronics Corp (TYO:6723), Tokyo Electron Ltd. (TYO:8035), and Advantest Corp. (TYO:6857) rose between 0.5% and 4%.
Tech conglomerate SoftBank Group Corp. (TYO:9984), which is invested in OpenAI, rose nearly 3%, while electronics manufacturers Ibiden Co Ltd (TYO:4062) and Nikon Corp. (TYO:7731) rose over 1% each.
Mainland China, Hong Kong, and South Korean markets were closed for a holiday.
AMD (NASDAQ:AMD) rallied nearly 24% in overnight trade after the company announced a multi-year deal to supply AI chops to OpenAI, a deal that could generate tens of billions in revenue annually.
The deal also reportedly includes an option for OpenAI to acquire up to 10% of AMD’s equity.
The deal highlighted the AI industry’s growing appetite for computing power and processors– a trend that is widely expected to underpin global chip demand in the coming months,
A large portion of the chip supply chain is centered around Asia, with TSMC and memory chip major SK Hynix Inc (KS:000660) being key suppliers to the AI sector.
