Nvidia’s stock soared over 16 percent to reach a record high of $785.38 on February 22, bolstering its market capitalization by approximately $277 billion and nearly reaching a total market value of $2 trillion.
This surge surpassed the $197-billion increase observed by Meta, the parent company of Facebook, earlier in the month, marking the largest single-day gain in Wall Street history at $1.96 trillion.
Investor enthusiasm for Nvidia was ignited by the company’s better-than-expected quarterly earnings, which exceeded already high analyst estimates. The strong performance underscores the soaring demand for specialized chips utilized in AI computing.
The remarkable and record-breaking rally in Nvidia’s shares is expected to positively impact semiconductor-related stocks in India, including ASM Technologies and SPEL Semiconductors. ASM Technology’s shares traded at Rs 874.75, registering a gain of 3.85 percent on the morning of February 23. The stock has surged over 78 percent year-to-date and has seen a staggering increase of 1,750 percent over the past five years.
In February alone, ASM Technology witnessed an 83 percent rally, with the company providing services to reputable semiconductor equipment manufacturers.
According to Darpan Patil, founder of Rupic consultancy, ASM Technology garnered significant buying interest as it broke out of its 19-year consolidation range, indicating a two-year breakout in the stock and driving continued demand for shares based on chart analysis.
SPEL Semiconductor, on the other hand, saw its shares locked in a 5 percent upper circuit on the morning of February 23, experiencing a 56 percent surge so far in February. Over the course of one year, SPEL Semiconductor’s shares have appreciated by 195 percent.
SPEL Semiconductor operates a semiconductor IC assembly and testing facility, serving as a strategic contract manufacturing partner for numerous leading chipmakers worldwide. The company offers packaging solutions for semiconductors utilized in a wide range of end-market applications, including communication, consumer electronics, computing, industrials, and automotive sectors.
