(Bloomberg) — The list of Asian stocks that benefit from business partnership with Nvidia Corp. (NVDA) is getting longer, as the region further integrates into the AI chip giant’s business ecosystem.
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Just in the past week, South Korea’s LG Electronics Inc. (066570.KS), Taiwan’s Nanya Technology Corp. (2408.TW), as well as China’s Huizhou Desay SV Automotive Co. (002920.SZ) and Pateo Connect Technology Shanghai Corp. (2889.HK)have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer.
Investor enthusiasm about these firms, some of which are relatively obscure outside the industry or domestic markets, is a reminder of how Nvidia-induced demand is shaping stock performance across Asia’s technology supply chain.
Asian suppliers now account for about 90% of Nvidia’s production costs, up from roughly 65% last year, according to data compiled by Bloomberg. The explosive growth of the chip designer’s products has intensified its reliance on Asian partners that dominate manufacturing, assembly and key components.
“It’s inevitable that global tech companies like Nvidia will continue to ramp up their reliance on Asia supply chain,” said Vey-Sern Ling, managing director at Union Bancaire Privee. Physical AI “can add on top of the already burgeoning demand from Asia’s supply chains for AI chips,” he added.
Nvidia has expanded its roster of Asian partners in recent years, primarily through deeper chip-focused ties with suppliers such as SK Hynix Inc. and Samsung Electronics Co. While those partnerships concentrated on scaling AI computing power, the latest wave of collaborations in the region pointed to a shift beyond semiconductors into physical AI, including robotics.
Shares of LG Electronics jumped as much as 15% on Tuesday, their biggest intraday gain since Feb. 11, following a domestic media report that the firm and Nvidia will discuss a plan to integrate its home robot with the US chip designer’s platform.
In Taiwan, Nanya Technology’s shares surged 10% after a local news report on the chipmaker’s collaboration with Nvidia. Elsewhere, China’s Huizhou Desay also saw its stock rally after unveiling a new mass‑production intelligent driving solution with Nvidia, while automobile product maker Pateo Connect Technology’s shares soared after the company entered a series of collaborations with Nvidia.
A LG Electronics spokesperson said the company can confirm that it recently met with Nvidia, adding that the two companies are exploring strategic collaboration in physical AI, including the robotics ecosystem.
A representative for Samsung Electronics declined to comment in response to Bloomberg’s queries. Nanya said in an emailed response that it doesn’t comment on customer-related information.
Nvidia’s push into physical AI — spanning robotics, autonomous systems and AI-enabled manufacturing — extends its influence beyond chips into real-world deployment, positioning Asia as a critical partner in that expansion. Its Chief Executive Officer Jensen Huang has framed physical AI as the next wave after generative AI.
“Increasing and broadening demand is creating opportunities across industries for more tech suppliers to join the supply chain as AI buildout continues globally,” said Marvin Chen, a strategist at Bloomberg Intelligence. “It means that tech heavy north Asian markets may continue to outperform.”
The latest capital expenditure guidance from US tech giants shows AI spending is accelerating, with Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT) and Alphabet Inc. (GOOG, GOOGL) each committing roughly $190 billion to $200 billion for this year and Meta Platforms Inc. (META) raising its outlays to as much as $145 billion.
Nvidia accounts for about half of Microsoft’s capital expenditure and roughly a quarter of Amazon’s, with a smaller but still leading share at Meta and Alphabet, based on calculations of data compiled by Bloomberg.
Meanwhile, Hon Hai is a consistent secondary beneficiary, particularly at Microsoft and Amazon, while SK Hynix takes a mid-single-digit share across companies.
Surging demand has shown up in the results of those suppliers. Samsung’s semiconductor arm beat expectations last week with a 48-fold jump in profit. A few days earlier, SK Hynix reported a five-fold increase in quarterly earnings.
“Asia’s technology base is a structurally important advantage, particularly as AI creates new demand across semiconductors, components, servers and broader hardware infrastructure,” said Rajeev De Mello, a portfolio manager at Gama Asset Management SA. “Asia has already developed significant experience and supply chains to build advanced semiconductors, and robots, which is a strong base for implementing physical AI.”
—With assistance from Debby Wu, Neil Campling and Yoolim Lee.
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