The price of Nvidia, a popular AI chip company, reached a new record high, causing Asian semiconductor stocks to increase.

• On Monday, Nvidia's stock price increased, causing its market value to surpass $3.4 trillion and displace Microsoft as the second most valuable company on Wall Street, with Apple's valuation of approximately $3.55 trillion remaining the highest.
• Nvidia suppliers and semiconductor-related stocks surged in Asia due to the positive investor sentiment.

On Tuesday, Asian chip stocks increased following a record high close on Monday, as the chip industry continues to benefit from the growing artificial intelligence trend.

The surge in Nvidia suppliers and other chip companies' stocks in Asia was fueled by the bullish investors' sentiment, with SK Hynix, a South Korean chipmaker that produces high bandwidth memory chips for AI applications, experiencing a 2.5% increase in its shares.

Samsung Electronics, predicted to produce HBM chips for certain Nvidia items, experienced a 0.5% increase.

The Nvidia supply chain, which includes Foxconn and other companies, experienced a 2% and 2.5% increase in stock prices.

The surge in investor optimism extended to chip-related stocks in general, with Japanese semiconductor manufacturing firm rising 5%, equipment supplier gaining 3.6%, and increasing over 4%.

A Japanese technology conglomerate, which owns a stake in a chip designer, experienced a 6.4% increase in value.

Meteoric rise

On Wall Street, shares increased by 2.4% overnight, reaching a closing price of $138.07. This surpassed their previous high of $135.58 on June 18, boosting their market value to $3.4 trillion and making them the second most valuable company on Wall Street after .

Nvidia's shares experienced a significant increase on Monday, coinciding with the start of the earnings season. Many of the company's major clients have recently revealed products and technologies that rely heavily on Nvidia's graphics processing units (GPUs).

By the end of October, U.S. big tech companies such as Microsoft, Meta, Google, and Amazon will report their quarterly results after purchasing Nvidia's GPUs in large quantities to construct growing clusters of computers for their advanced AI work.

Nvidia's shares have rebounded after a decline following its second-quarter earnings, despite its gross margins decreasing.

Nvidia shares are now up almost 180% this year.