This article first appeared on GuruFocus.
Nvidia’s $5 billion investment into Intel Corp. (NASDAQ:INTC) has set off a chain reaction across Asia’s semiconductor sector. Intel’s stock jumped 23% on the news, and suppliers from Tokyo to Seoul saw double-digit gains as investors recalibrated expectations for the US chipmaker’s growth trajectory. The deal calls for Intel to co-develop chips for PCs and data centers with Nvidia (NASDAQ:NVDA), a collaboration that could reshape supply dynamics in the industry. Analysts noted that concerns over Intel cutting back on capital expenditures may now be off the table, which is supportive for the company’s providers.
Lasertec Corp., which derives almost a third of its revenue from Intel, surged as much as 15% in Tokyo, its strongest rally since April. Ibiden Co. advanced as much as 12%, while peers Tokyo Electron, Screen Holdings, and Shin-Etsu Chemical also gained. South Korea’s Intekplus Co. soared as much as 18%, with PSK, Jusung Engineering, and Komico each climbing more than 5%. In China and Hong Kong, Intel-linked names moved higher, led by Montage Technology’s 11% rally. The sentiment shift highlights how closely suppliers remain tied to Intel’s capital plans and underscores the market’s sensitivity to shifts in its strategic partnerships.
Not every player benefited. Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) slipped as much as 1.2%, with analysts pointing to the possibility that Intel could one day take on some of Nvidia’s production work, pressuring TSMC’s valuation. Even so, strategists suggested the broader takeaway could be constructive: stronger demand for semiconductor equipment makers, reinforced by Intel’s deeper alignment with Nvidia. In a sector where momentum often swings quickly, the deal may mark a new chapter in how investors frame the growth cycle for chipmakers across the region.