Semiconductor stocks surged Wednesday, propelled by robust earnings from industry giants ASML and SK Hynix, alongside reports indicating China’s approval for the import of Nvidia’s H200 chips. The VanEck Semiconductor ETF saw a 1.9% climb, reflecting the positive sentiment gripping the sector.
In Europe, ASML experienced a significant mid-morning rally, climbing 5% before settling down 1.9% by the close. Other semiconductor firms, including Infineon and STMicro, also registered gains. Dutch chip equipment manufacturer ASML announced strong fourth-quarter earnings, with orders surpassing analyst expectations and its 2026 sales forecast also exceeding projections.
Adding to the sector’s momentum, South Korea’s SK Hynix concluded the trading day with shares up over 5%, following the announcement of its record full-year profit for 2025. This surge is largely attributed to the escalating demand for AI-driven memory chips.
A significant development emerged from Reuters’ report that China has granted approval for domestic tech heavyweights ByteDance, Alibaba, and Tencent to procure Nvidia’s H200 AI chips. This marks a crucial turning point in the ongoing dynamics of Nvidia’s market presence in China, a region representing a substantial revenue stream for the company. While the U.S. had previously authorized H200 sales, China had reportedly encouraged its companies to explore domestic alternatives. In May, Nvidia had projected that export restrictions to China could result in an $8 billion loss in sales. Nvidia shares showed a modest increase of around 1.6% in premarket trading.
The strong financial performances of ASML and SK Hynix can be understood within the broader context of the semiconductor industry’s current landscape. A pronounced shortage of memory chips, fundamental components for both consumer electronics and data centers, has driven unprecedented price increases for these components, directly benefiting SK Hynix, a leading global memory chip producer.
Furthermore, the projected expansion of chip manufacturing capacity to meet the burgeoning demand for memory and other AI-specific chips, such as those designed by Nvidia, bodes well for companies like ASML. ASML’s mastery of extreme ultraviolet (EUV) lithography technology, essential for producing the world’s most advanced chips, positions it as a critical enabler of this production growth. Consequently, ASML reported bookings worth 13.2 billion euros ($15.8 billion), a key indicator keenly watched by investors.
These positive financial results from ASML and SK Hynix build upon a string of favorable reports from the semiconductor sector. Earlier this month, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip manufacturer, also posted record fourth-quarter profits, underscoring the robust health and growth trajectory of the global chip industry.
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