Nvidia, a leading chipmaker, saw its shares soar by over 16 percent to reach an unprecedented high of $785.38 on February 22. This surge added a staggering $277 billion to its market capitalization, pushing its total market value close to $2 trillion. This surge surpassed the historic gains made by Facebook-parent Meta earlier in the month, making it the largest single-day gain in Wall Street’s history, totaling $1.96 trillion.
Investor enthusiasm was sparked by Nvidia’s better-than-expected quarterly earnings report, which exceeded already high analyst estimates. The company’s strong performance underscores the soaring demand for specialized chips used in AI computing, signaling robust growth prospects in this sector.
Impact on Bharatiya Semiconductor Stocks
The remarkable rally in Nvidia’s shares has had a positive ripple effect on semiconductor-related stocks in Bharat, notably ASM Technologies and SPEL Semiconductors.
ASM Technology’s shares surged by 3.85 percent to trade at Rs 874.75 on the morning of February 23. With a staggering year-to-date increase of over 78 percent and an impressive five-year growth of 1,750 percent, ASM Technology has witnessed significant investor interest. The recent rally, particularly in February, has been remarkable, with an 83 percent increase. The company’s core business lies in providing services to reputable semiconductor equipment manufacturers.
According to Darpan Patil, founder of Rupic Consultancy, ASM Technology’s breakout from a 19-year consolidation range has attracted substantial buying interest. The stock’s two-year breakout is indicative of sustained demand, supported by chart analysis.
SPEL Semiconductor Surges
SPEL Semiconductor also experienced a surge, with its shares locked in a 5 percent upper circuit on February 23. The company’s shares witnessed a significant uptrend in February, with a 56 percent increase. Over the past year, SPEL Semiconductor’s shares have surged by an impressive 195 percent.
Specializing in semiconductor IC assembly and testing, SPEL Semiconductor serves as a strategic contract manufacturing partner for several leading chipmakers worldwide. The company offers packaging solutions for semiconductors utilized across various industries, including communication, consumer electronics, computing, industrials, and automotive.
Investor confidence in SPEL Semiconductor has been bolstered by its strong market positioning and its role as a critical player in the semiconductor ecosystem, driving substantial growth in its share value.
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