NVIDIA’s stock surged 4.13% on October 21, reaching a record high of $143.70. Major players in AI server manufacturing, including Hon Hai, Quanta, Wistron, and Inventec, rallied on October 22, playing a pivotal role in leading Taiwan’s stock market surge. Hon Hai’s market capitalization is approaching NT$3 trillion (approximately $93.6 billion), while the combined market value of these four companies increased by over NT$130 billion (around $4.05 billion).
By the end of trading on October 21, NVIDIA’s market cap hit $3.525 trillion, marking the first time it surpassed the $3.5 trillion threshold, just shy of Apple’s $3.6 trillion. On October 22, however, NVIDIA’s stock dipped about 0.3% in early trading.
Taiwan Semiconductor Manufacturing Company (TSMC), a leader in wafer fabrication, recently released a positive outlook that fueled market excitement over AI demand. Analysts are optimistic about NVIDIA’s next-generation AI chip, Blackwell, which has driven a surge in buying for Taiwanese AI server manufacturing stocks.
Hon Hai’s stock rose 2.62%, or NT$5.5, closing at NT$215.5—its highest point in nearly three months. The company’s market cap reached NT$2.986 trillion (around $93.1 billion), just a stone’s throw from the NT$3 trillion mark, reflecting an increase of NT$762 billion (approximately $23.7 billion) from the previous day. So far in October, Hon Hai’s stock has soared 14.9%, with its market cap climbing by over NT$420 billion (about $13.1 billion).
Foreign investors were significant buyers of Hon Hai on October 22, acquiring 27,000 shares, with all three major investing groups collectively purchasing 34,000 shares. Over the past five trading days, these groups have bought a total of 58,000 shares of Hon Hai, which has been the primary driver of the stock’s rise. If buying momentum continues, Hon Hai could quickly surpass the NT$3 trillion market cap again.
Market analysts pointed out that Hon Hai is a key supplier for NVIDIA’s GB200 AI servers, with plans to start production in November and shipments in December, alongside substantial deliveries expected next year. This could significantly boost company performance, prompting buyers to position themselves early.
Quanta’s stock also saw a robust increase of 3.24% or NT$10, closing at NT$319—a new three-month high. Its market value surged to NT$1.23 trillion (approximately $38.3 billion), up NT$385 billion (around $12 billion) from the previous day. Since the beginning of October, Quanta’s stock has jumped by over 20%, with a market cap increase of more than NT$210 billion (about $6.55 billion).
Wistron Group was part of the positive trend as well, with Inventec’s stock climbing 2.53% or NT$50, closing at NT$2,025 and increasing its market cap by NT$89 billion (about $2.7 billion) to NT$376.2 billion (approximately $11.73 billion). Since the start of October, this stock has surged by 18%, and its market cap has increased by NT$576 billion (around $17.9 billion).
Inventec’s parent company, Wistron, also saw gains, rising 2.26% or NT$2.5 to close at NT$113, approximately reaching a three-month high. Its market cap now stands at NT$327.3 billion (around $10.21 billion), an increase of NT$72 billion (about $2.2 billion) from the previous day. Since early October, Wistron’s stock has climbed over 11%, with a market cap increase of NT$347 billion (around $10.8 billion).
Wall Street anticipates that NVIDIA’s clients, including tech giants like Microsoft, Amazon, Alphabet, and Meta, will surpass $60 billion in total capital expenditures for the quarter ending September 30, a significant increase of 56% from the same period last year. These four companies account for over 40% of NVIDIA’s revenue for the second quarter.
