Nvidia, dominating the AI semiconductor market, boosted semiconductor stocks worldwide on Thursday.
During trading, Nvidia’s stock soared by 8.68 USD (6.43%) to 143.49 USD. While gains narrowed to around 4% in the afternoon, the company’s strong performance continued to drive the New York Stock Exchange.
The unexpected earnings report released after the market closed the previous day fueled Nvidia’s stock surge.
Despite the impact of U.S. President Donald Trump’s semiconductor export restrictions to China, Nvidia posted better-than-expected results.
As a leader in AI semiconductors, Nvidia serves as a barometer for the broader semiconductor industry and AI-related stocks.
Nvidia’s stellar performance reverberated globally.
In the U.S., American Depositary Receipts (ADRs) of AMD, Qualcomm, and Taiwan Semiconductor Manufacturing Company (TSMC) climbed about 1%. However, AMD saw a slight decline in afternoon trading.
On the Tokyo Stock Exchange, Tokyo Electron closed up over 4%. In South Korea, SK Hynix, which supplies high-bandwidth memory (HBM) chips to Nvidia, jumped nearly 2%.
European semiconductor-related stocks also saw gains.
On the Amsterdam Euronext, ASM International rose 2.7%, and BE Semiconductor increased 1.5%.
ASML, the manufacturer of optical semiconductor production equipment, edged up 0.3% in New York trading.
The semiconductor industry has faced challenges since the beginning of Trump’s second term.
Uncertainty surrounding tariff policies and U.S. chip export controls to China has created a difficult business environment.
Netherlands’ ASML, which produces crucial optical semiconductor equipment for advanced chip manufacturing, saw its market capitalization plummet by over 130 billion USD due to these pressures.
In its earnings report the previous day, Nvidia revealed that export restrictions to China resulted in 4.5 billion USD in losses from unsold H20 chips originally produced for the Chinese market. The company also reported a 2.5 billion USD drop in revenue.
Despite some regulatory easing, the Trump administration’s semiconductor export controls to China are expected to persist.
CNBC, citing a Reuters report, stated that the U.S. government has ordered multiple companies, including those producing semiconductor chemicals and design software, to halt shipments to China without export licenses.
Meanwhile, Nvidia is credited with offsetting the impact of reduced China sales by securing substantial semiconductor orders during Trump’s recent Middle East tour.
