Opening
Nvidia's latest earnings report triggered a 5.5% rally in Bloomberg's gauge of Asian chipmakers, with major semiconductor and electronics manufacturers posting significant gains. CEO Jensen Huang highlighted that artificial intelligence demand is expanding beyond large cloud companies into robotics, automated vehicles, and lower-end chips. Samsung, SK Hynix, SoftBank, TSMC, and Hon Hai all advanced following Nvidia's results, while LG Electronics and Hyundai Mobis climbed more than 20%, with MediaTek hitting its daily trading limit in Taiwan. According to Bloomberg data, Asian suppliers now account for approximately 90% of Nvidia's production costs, up from roughly 65% last year, underscoring the region's critical role in the semiconductor supply chain.
Stock Performance and Earnings Impact
The immediate market reaction reflected investor confidence in Nvidia's expanded addressable market. Bloomberg's Asian chipmaker index gained as much as 5.5% following the earnings announcement. Named beneficiaries included established foundry and memory suppliers whose production capacity supports Nvidia's roadmap across data center, automotive, and robotics platforms.
Supply Chain Concentration
Asian suppliers now represent approximately 90% of Nvidia's production costs, according to Bloomberg analysis—a significant increase from roughly 65% in the prior year. This concentration reflects Nvidia's dependence on Taiwan Semiconductor Manufacturing's wafer capacity, Samsung and SK Hynix memory production, and regional packaging and assembly services.
Physical AI and Robotics Expansion
Jensen Huang stated that AI demand is widening into robotics, automated vehicles, and lower-end chips. Hyundai Motor Group announced at CES 2026 its aim to build an annual system capable of producing 30,000 robots by 2028, and introduced the mass-production version of the Boston Dynamics humanoid robot Atlas—a company Hyundai owns. This positioning could establish Hyundai Motor Group as a significant buyer of robots and AI hardware, aligning with the sector expansion Huang described.
New Product Lines and Supply Demand
Nvidia is advancing further into robotics and automotive platforms with Jetson Thor and DRIVE AGX Thor product lines. These physical AI products utilize 3-nanometer wafers and LPDDR5X memory from Samsung or SK Hynix. Separately, OpenAI has announced plans to collaborate with Broadcom on AI chips designed to use Taiwan Semiconductor Manufacturing's 3-nanometer process and CoWoS packaging with High Bandwidth Memory, with mass production expected to start in 2026.
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