Catenaa, Sunday, May 03, 2026- Asian stocks are benefiting from AI partnerships with Nvidia as demand for AI rises in the region.
Just in the past week, South Korea’s LG Electronics, Taiwan’s Nanya Technology, as well as China’s Huizhou Desay SV Automotive and Pateo Connect Technology Shanghai 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.
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. While those partnerships focused on scaling AI computing power, the latest wave of collaborations in the region signaled 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 February 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.
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.”
The latest capital expenditure guidance from US tech giants shows AI spending is accelerating, with Amazon, Microsoft, and Alphabet each committing roughly $190 billion to $200 billion for this year and Meta Platforms 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 fivefold increase in quarterly earnings.
