Nvidia Frenzy Widens Gap Between US Chipmakers and Asian Peers
- Asia is deemed the backbone of the global AI supply chain
- Sluggish demand for other electronics holding some firms back
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The artificial intelligence mania sparked by Nvidia Corp.’s sterling results has given a lift to Asia’s major chipmakers, but it hasn’t closed the valuation gap with their US peers.
A Bloomberg gauge tracking Asia’s top semiconductor firms, including Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., widened its underperformance against the Philadelphia Semiconductor Index this week. While the Asian index trades at 17 times forward earnings, the US measure is at 27 times, pushing the gap close to a record after Nvidia’s blowout revenue outlook reinforced investor conviction in the boom in generative AI use.