Asian Chip Stocks Rebound Despite Nvidia CEO Controversy

Asian semiconductor stocks advanced on Monday, recovering some of last week's losses as investors bought technology shares despite concerns surrounding Nvidia Chief Executive Jensen Huang, Yuvraj Malik reported for Stocktwits.

Asian semiconductor stocks rebounded on Monday, with TSMC, Samsung and SK Hynix posting gains despite the controversy surrounding Nvidia CEO Jensen Huang. [Photo: SK Hynix X]

Taiwan Semiconductor Manufacturing Co. (TSMC) shares in Taiwan rose 4.7%, while Samsung Electronics and SK Hynix shares in South Korea gained 0.6% and 0.4%, respectively.

The gains followed a sharp selloff last week, driven partly by concerns that a Democratic-led US Congress could pursue tighter regulation of artificial intelligence companies and slow the expansion of data centers.

However, US-listed shares of SK Hynix and TSMC were weaker in overnight trading, falling 3.5% and 0.3%, respectively, according to the report.

One of the major developments weighing on investor sentiment was the controversy surrounding Nvidia.

Huang admitted to employees that he had been unfaithful to his wife, while the company's board announced an independent investigation into reports that he had been targeted by a foreign intelligence operation.

The allegations involve Alice Huang, a businesswoman whom US intelligence officials reportedly suspect of having links to China's Ministry of State Security.

The claims have not been established as fact, and Nvidia has said it has no reason to believe that company secrets or US national security were compromised.

Nvidia shares fell sharply in premarket trading on Monday, raising questions about whether the controversy could affect investor confidence in the broader semiconductor industry.

Despite the uncertainty, gains in major Asian chipmakers suggested that investors were still willing to buy semiconductor shares after last week's heavy losses.