Asian suppliers of Apple Inc (NASDAQ) saw significant gains on Thursday, mirroring the sharp rise in the iPhone maker's stock this week following its introduction of several artificial intelligence enhancements for its flagship devices.
Apple's stock surged nearly 10% this week, briefly overtaking Microsoft (NASDAQ) as the world's most valuable company, driven by positive investor response to its recent developer conference. Analysts are optimistic that these AI features could stimulate a sales rebound for Apple, particularly boosting demand for its iPhone, which has faced sluggish sales in recent quarters.
The uptick in iPhone sales prospects is favorable news for Apple's Asian suppliers, many of which experienced notable increases in their stock prices this week:
South Korean memory chip giants Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) rose by 2.4% and 3.7% respectively. Samsung SDI (KS:006400), a supplier of batteries to Apple, also gained 0.5%.
Taiwan Semiconductor Manufacturing Company (TSMC) (TW:2330) (NYSE), the world's largest contract chipmaker and a key Apple supplier, saw a 2% increase. Hon Hai Precision Industry Co Ltd (Foxconn) (TW:2317), which assembles iPhones and other Apple products, added 0.4%, both companies showing strong performance for the week.
In China, AAC Technologies Holdings Inc (OTC), which manufactures acoustic components for Apple, increased by 2%. BYD Co (HK:1211), another Apple supplier known for its battery technology, surged nearly 8%.
Investors welcomed Apple's AI initiatives, anticipating that new features such as enhanced voice commands and advanced photo editing capabilities will rejuvenate iPhone sales. These features are primarily compatible with newer iPhone models, potentially driving a new wave of upgrades among consumers.
Additionally, Apple's focus on AI is expected to bolster its software services segment, which has maintained strong revenue despite challenges in hardware sales.
Paraphrasing text from "Reuters" all rights reserved by the original author.
