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  1. Indian AI stocks gain after Nvidia Corp’s record rally

Indian AI stocks gain after Nvidia Corp’s record rally

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2 min read • Updated: February 23, 2024, 1:49 PM

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The stocks of some of India’s top AI companies saw an upward trend on Friday, with shares of Happiest Minds Technologies and Kellton Tech Solutions jumping over 4%

Shares of the companies operating in the artificial intelligence (AI) and semiconductor-related industry in India are in focus on Friday after the world’s leading chipmaker Nvidia triggered a rally in tech stocks following its strong quarterly results.

Shares of the California-based multinational technology company Nvidia Corporation ended 16% higher on Thursday, recording an all-time high of $785.38 per piece after the company reported strong earnings for the quarter ended on December 31, 2023.

The US tech major’s revenue rose sharply by 265% on a year-on-year (YoY) basis to $22.10 billion in the fiscal fourth quarter, while the net income rallied by 769% YoY, heavily beating the estimates set by Wall Street, as the company continues enjoying a boost from its artificial intelligence (AI) segment.

The demand for the company’s specialised chips used in AI computing is still on the rise and soaring, with the record closing of February 22, 2024, adding nearly $277 billion to the market capitalisation of Nvidia, and bringing its total market valuation close to $2 trillion.

The result of Nvidia’s rally in stock price aided by higher-than-estimated December quarter results was seen on Indian semiconductor-related stocks too on Friday.

Shares of the leading semiconductor company SPEL Semiconductor Ltd have been locked in at a 5% upper circuit in Friday’s session at ₹119.75 per piece, while also recording a 52-week high at this price. The stock has gained sharply by 57% so far in the year 2024, and has given stellar returns of nearly 200% to its investors in the last one year. The company has India’s first and only Semiconductor IC Assembly and Test facility in the country.

The engineering innovation company ASM Technologies Ltd’s shares are locked in upper circuit at ₹926 per piece at 13:35 PM in Friday’s session, with a market capitalisation of ₹973 crore. The stock has surged 94% so far this year, and has given skyrocketing returns of more than 450% over the past one year period.

Further, shares of some of India’s top AI companies also saw an upward trend, with shares of Happiest Minds Technologies and Kellton Tech Solutions jumping over 4%, while those of L&T Technology Services rose over 3%.

The share prices of other top Indian AI stocks like Tata Elxsi, Persistent Systems, Oracle Financial Services Software, Saksoft and Mphasis gained over 1% each in the session