Tech heavyweights rose Monday, rebounding from Friday’s losses and in full swing Nvidiainvestigation into CEO Jensen Huang.
Chip stocks including TSMC and ASMLwere higher in Asia and Europe on Monday, after Nvidia’s board launched an independent investigation on Sunday.
Nvidia shares were last down more than 5% in premarket trading, with other U.S. chip stocks also slightly lower. Intel, Wonderful, Qualcomm And Arm were all down more than 1% in early premarket trading.
Tech stocks were hit hard last week as investors reassessed data center construction after Democrats took control of Congress. But the sector has since rebounded from Thursday’s sharp AI-driven sell-off.
Taiwanese markets led Monday’s rally in Asian markets, with the Taiwan Weighted Index up to 6.7%.
The index was fueled by gains in heavyweights Taiwan semiconductor manufacturing company and Foxconn – officially known as Hon Hai Precision Industry. TSMC rose more than 6%, while Hon Hai rose more than 8%.
Other chip stocks in the region also rose, with Samsung Electronics and South Korea’s SK Hynix up 2.7% and 4.77%. Both companies are known suppliers to Nvidia.
Seoul expects contracted deliveries of Nvidia graphics processing units to proceed without interruption despite the controversy, South Korea’s Second Vice Minister of Science and ICT, Ryu Je Myung, reportedly said.
Ryu also added that the ministry is closely monitoring developments and discussing pricing and timelines with Nvidia Korea.
In Europe, the Stoxx 600 technology index was up 1.3% in early morning trading, with semiconductor equipment maker ASML up 1.7%. Be semiconductor And ASM International were also trading higher.
The Nvidia affair
The investigation into Nvidia’s CEO has raised concerns about the company’s direction, analysts told CNBC.
If Huang’s position is “in danger,” then “Nvidia could reduce its support for other companies, whether in Asia or the United States, which could then spread a little more to other semiconductor names,” said Joachim Klement, investment strategist at Panmure Liberum.
Huang, who told Nvidia staff he had an affair with the woman, apologized, but an Nvidia spokesperson said Huang was committed to remaining Nvidia CEO without interruption.
U.S. intelligence agencies have expressed concerns that the woman, Alice Huang, affiliated with a cloud computing company and Nvidia customer called Megaspeed, passed information to Beijing, according to reports in the New York Times and the Financial Times.
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