Asian chipmaking and AI-related stocks advanced on Tuesday, following a strong rally in AMD shares after the company announced a multi-year partnership with OpenAI to supply AI processors.
In Taiwan, TSMC (TW:2330) — the world’s largest contract chipmaker — gained 2.5%, while Hon Hai Precision Industry Co. Ltd. (TW:2317), better known as Foxconn, rose 1.1%.
In Japan, semiconductor stocks also climbed. Renesas Electronics Corp (TYO:6723), Tokyo Electron Ltd. (TYO:8035), and Advantest Corp. (TYO:6857) advanced between 0.5% and 4%.
SoftBank Group Corp (TYO:9984), an early investor in OpenAI, jumped nearly 3%, while Ibiden Co Ltd (TYO:4062) and Nikon Corp (TYO:7731) each gained more than 1%.
Markets in mainland China, Hong Kong, and South Korea were closed for holidays.
AMD’s OpenAI deal fuels global AI optimism
In the U.S., AMD (NASDAQ:AMD) surged 24% overnight after revealing a multi-year deal to supply AI chips to OpenAI, a move expected to generate tens of billions of dollars in annual revenue. The agreement reportedly gives OpenAI the option to purchase up to 10% of AMD’s equity.
The deal highlights the booming demand for computing power across the artificial intelligence sector, reinforcing expectations that chip demand will remain strong in the months ahead.
Asia continues to play a central role in the global semiconductor supply chain, with TSMC and SK Hynix Inc (KS:000660) among the key suppliers powering the rapid expansion of the AI industry.
