Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Chipmaking and AI-related stocks in Japan and Taiwan climbed sharply on Tuesday, following a surge in AMD (NASDAQ: AMD) shares overnight after the U.S. semiconductor giant announced a multi-year deal to supply artificial intelligence processors to OpenAI.
Strong Gains Across Key Asian Chipmakers
In Taipei, Taiwan Semiconductor Manufacturing Company (TSMC) — the world’s largest contract chipmaker and a key AMD supplier — advanced 2.5%, while Hon Hai Precision Industry (Foxconn) added 1.1%.
In Tokyo, semiconductor stocks led the rally. Renesas Electronics, Tokyo Electron, and Advantest Corp. gained between 0.5% and 4%, lifted by renewed optimism in AI-driven chip demand.
Tech conglomerate SoftBank Group, an investor in OpenAI, jumped nearly 3%, while electronics manufacturers Ibiden Co. and Nikon Corp. rose over 1% each, tracking the global semiconductor uptrend.
Markets in mainland China, Hong Kong, and South Korea were closed for a public holiday, limiting broader regional trading activity.
AMD’s Breakthrough Deal with OpenAI
The sector-wide rally came after AMD shares surged nearly 24% in U.S. trade. The company revealed a partnership with OpenAI to supply AI chips under a multi-year agreement expected to generate tens of billions of dollars in annual revenue.
The deal includes an option for OpenAI to acquire up to 10% of AMD’s equity, underlining the strength of the partnership and AMD’s deepening involvement in the AI infrastructure ecosystem.
AI Demand Fuels Semiconductor Outlook
The announcement underscores the growing global appetite for computing power as artificial intelligence applications expand across industries. AMD’s entry into large-scale AI chip supply positions it as a strong competitor to Nvidia, while also benefiting Asian semiconductor suppliers that dominate the global chip production chain.
With TSMC and SK Hynix serving as key contributors to the AI supply chain — producing advanced chips and memory components for high-performance AI workloads — analysts expect continued strength in the region’s technology sector in the near term.
The AMD–OpenAI deal is seen as another major catalyst in the AI investment wave that has fueled a global semiconductor rally since early 2023, signaling that the competition for AI hardware dominance is set to intensify.
