Shares of semiconductor-related stocks witnessed a surge in buying on domestic bourses on Friday, tracking a record rally in U.S. chip design firm Nvidia on Wall Street overnight after it posted better than expected earnings, driven by strong demand for artificial intelligence (AI) chips. The record rally in Nvidia shares overnight seems to have a positive impact on semiconductor-related stocks in India, with companies such as ASM Technologies and SPEL Semiconductor rising up to 5%Indore Stock. Among others, Moschip Technologies, Dixon Technologies (India), Tata Elxsi gained up to 1%. On the other hand, Vedanta and Surana Solar were down in the range of 1-2%.
Santosh Meena, Head of Research, Swastika Investmart, says, “NVIDIA, the leader of the ongoing global bull market, is experiencing a notable surge post-earnings, buoyed further by robust management commentaryKolkata Wealth Management. This positive momentum is not only boosting its value but also igniting a rally in other semiconductor stocks worldwideGuoabong Wealth Management. Despite the absence of pure-play semiconductor companies in India, the shares of related entities are experiencing upward movement. However, it’s essential for investors to exercise prudence and refrain from making impulsive decisions without conducting thorough analysis.”
In a historic stock market gain, Nvidia shares zoomed 16.4% to hit a new closing high of $785.38, adding about $277 billion to its market capitalisation and bringing its total market value to $1.94 trillion. The single-day gain in Nvidia stock was higher than the total market capitalisation of Reliance Industries, the country’s most valued firm, of $243 billion.
The surge in Nvidia’s shares made it the third-most valuable company in the U.S. stock market, surpassing heavyweights such as Amazon and Alphabet, while it registered Wall Street’s largest one-day gain of $277 billion, breaking the record of $197-billion rally made by Facebook-parent Meta on February 2 after it released December quarter results and declared its first dividend.
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