Nvidia’s $100 Billion Investment in OpenAI Sparks Global Semiconductor Rally
- Rahaman Hadisur
- Sep 26
- 2 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
Global semiconductor stocks surged on Tuesday after Nvidia confirmed a $100 billion investment to support OpenAI’s ambitious plans to deploy massive computing infrastructure powered by millions of its chips.
According to Nvidia CEO Jensen Huang, OpenAI intends to build and run Nvidia systems that will require 10 gigawatts of power, equivalent to between 4 million and 5 million graphics processing units (GPUs). The scale of the project underscores the extraordinary demand for advanced AI infrastructure and highlights Nvidia’s central role in the artificial intelligence boom.
The announcement sent ripples through equity markets worldwide, particularly benefiting companies tied to Nvidia’s supply chain. In Taiwan, shares of Taiwan Semiconductor Manufacturing Co. (TSMC), which produces Nvidia’s advanced chips, jumped 3.5%. South Korea’s SK Hynix, a supplier of high-bandwidth memory critical for Nvidia’s GPUs, closed up more than 2.5%, while Samsung added 1.4% on speculation it may soon secure approval to supply similar chips to Nvidia. Japanese equipment maker Tokyo Electron also posted gains.
“Ultimately this is a broad market with lots of suppliers. It certainly isn’t a zero-sum game with only one winner, and indeed it appears investors are recognising that,” Ben Barringer, global technology analyst at Quilter Cheviot, told CNBC. “While this deal may be negative in the short term for Nvidia’s competitors, it is a sign that the AI trade is alive and well.”
The rally extended into Europe, where shares of STMicroelectronics, Infineon, and BE Semiconductor rose in early trading. However, the positive sentiment was tempered by Dutch semiconductor equipment maker ASM International, which warned its fourth-quarter revenue would come in below expectations, dragging down its stock and weighing on other equipment manufacturers such as ASML.
Despite the mixed picture in Europe, analysts emphasized that the strengthening AI ecosystem will benefit equipment makers over time. “Companies like ASML and ASMI will ultimately gain from sustained demand by TSMC, Nvidia’s key manufacturing partner,” wrote Stephane Houri, head of equity research at ODDO BHF, in a client note.
The Nvidia-OpenAI partnership signals both the scale of investment flowing into artificial intelligence and the broad market implications for global chipmakers, as AI continues to reshape technology and financial markets worldwide.
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