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Nvidia Optimism Lifts Japan, Taiwan Stock Gauges to Record Highs

Nvidia Corp.’s robust forecast is powering another rally in artificial intelligence-related shares, boosting markets like Japan and Taiwan to new heights. 
Bloomberg
By Bloomberg
22 Feb
Japan Stocks Trading Value Hits Record on Foreign Buying, MSCIAn electronic stock board showing the Nikkei 225 Stock Average figure displayed inside the Kabuto One building in Tokyo, Japan, on Thursday, 1 June 2023.

The Nikkei 225 topped its previous peak on Thursday as semiconductor supply chain players such as Advantest Corp. and Tokyo Electron Ltd. advanced. A rally in chip giant Taiwan Semiconductor Manufacturing Co. — Nvidia’s biggest Asian supplier — this month lifted Taiwan’s equity benchmark to a record high.

Nvidia 'Halo Effect' Sends Stock Indexes to Record Highs

Analysts have upgraded target prices and earnings estimates for Nvidia after it forecast revenue in the current period at about $24 billion, beating average predictions of $21.9 billion. This bodes well for stocks tied to the US company’s supply chain and has buoyed European stocks to a record Thursday.

“We continue to believe that Nvidia drives a ‘halo effect’” for the sector, Melius Research analyst Ben Reitzes wrote in a note.

Read: AI Mania Resumes, With Nvidia Outlook Saving Broader Market

Nvidia gave revenue guidance for the current period that beat Wall Street’s lofty expectations, signaling demand remains solid for the hardware that purports to usher in a revolution in productivity — and profitability.

Nvidia’s market capitalization increased by more than $400 billion this year — bringing its valuation to $1.7 trillion — as investors bet that the company will remain the prime beneficiary of an AI computing boom.

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