May 18 (Reuters) – Nvidia (NVDA.O) and Advanced Micro Devices and Micron Technology (MU.O) shares on Thursday were the biggest boost to the chip sector, prompting investors to invest outperformed the overall market. Artificial intelligence and in Japan.
Shares of chip-design software company Synopsys (SNPS.O) rose 8.7% after it announced a better-than-expected third-quarter earnings forecast, citing growing use of AI and automation to boost the company’s earnings. finished.
Nvidia shares were up 5.0% and the Philadelphia Semiconductor Index was up 3.2%.
Micron’s shares rose 4.1 percent after it announced it would invest up to 500 billion yen ($3.7 billion) in Japan’s extreme ultraviolet (EUV) technology over the next few years, backed by the Japanese government.
Japanese President Fumio Kishida invites company executives including Micron, Intel (INTC.O) and Taiwan Semiconductor (TSMC) (2330.TW) to Japan ahead of the three-day G7 summit requested investment. Hiroshima will discuss what member states see as China’s economic coercion policies and classified technology stocks.
Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, said Thursday’s rally in shares was more driven by investor interest in the rise of artificial intelligence as the hottest new technology than news out of Japan. He said it was because it continued.
“It’s encouraging to see companies and countries working together to expand production capacity, but when companies are building new factories, it’s generally not profitable for investors in the short term,” Forrest said. “That’s where all of our free cash flow goes.”
However, the fund manager also said Synopsys’ results were a positive sign for the chip sector, although investors see chips as part of an AI story that could be bought today, calling it “a pivotal company that can be bought. There is not one,” he pointed out. For AI.
AMD shares rose 4.0%, while Intel rose 2.8%. Nvidia, which is up 116% so far in 2023, is set to report quarterly results on May 24.
Nvidia shares hit their highest since December 2021, while Micron shares hit their highest since June 2022.
The S&P 500 Technology Index (.SPLRCT) rose 2.1%, while the S&P 500 Growth Index (.IGX) slowed to 1.0%, trailing the semiconductor sector.
Reporting by Sinéad Carew Editing by Marguerita Choy
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