Western Digital, Himax, and Teradyne shares jumped after Nvidia reported record sales and income driven by AI infrastructure demand.

Nvidia reported record sales and income, with its CEO describing 'parabolic' demand for AI infrastructure. In response, Western Digital (memory semiconductors) jumped 4.9%, Himax (analog semiconductors) jumped 5.7%, and Teradyne (semiconductor manufacturing) jumped 3.7%.

Strong Nvidia results signal a massive buildout of data centers, which require high-performance chips and essential components like High Bandwidth Memory (HBM) produced by memory chip manufacturers. Some analysts have declared a 'semiconductor supercycle'—a prolonged period of above-average growth for the industry.

Himax's shares are extremely volatile, having had 36 moves greater than 5% over the last year. Three days prior, the stock dropped 5.2% following news of a potential strike at Samsung and a stake sale by TSMC, which rattled global chip supply chains. Supply constraints for rare earth materials used in semiconductor manufacturing have reportedly caused delays and higher input costs.