Nvidia (NVDA) is driving strong demand across Asia, and more stocks in the region are now moving in step with the company. In recent days, firms such as LG Electronics (IN:LGEINDIA), Nanya Technology (NNYAF), and Pateo Connect Technology (HK:2889) saw their shares rise following news of ties to Nvidia.
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New trading tool for AMZN bullsThese gains show how investors are looking beyond Nvidia itself and toward its wider network. Many of these firms are not well known to U.S. investors, yet they play a key role in the supply chain.
At the same time, Asia’s role has grown fast. Suppliers in the region now make up about 90% of Nvidia’s production costs, up from about 65% last year. This shift reflects the sharp rise in demand for AI chips and systems.
“It’s inevitable that global tech companies like Nvidia will continue to ramp up their reliance on the Asia supply chain,” said Vey-Sern Ling of Union Bancaire Privee.
Meanwhile, NVDA shares dropped slightly on Friday, closing at $198.45.
Shift Toward Physical AI
At the same time, Nvidia is moving beyond chips into what it calls physical AI. This includes robots, self-driving systems, and smart factories. As a result, new types of firms are joining its network.
For example, LG Electronics said it met with Nvidia to explore work in robotics. In China, Huizhou Desay is working with Nvidia on smart driving tools, while Pateo Connect has also formed new ties.
This trend suggests that Nvidia’s reach is expanding beyond data centers into real-world use. As Marvin Chen of Bloomberg Intelligence noted, “Increasing and broadening demand is creating opportunities across industries for more tech suppliers to join the supply chain.”
Meanwhile, large U.S. tech firms like Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META) plan to spend between $190 billion and $200 billion on AI this year. Nvidia is set to take a large share of that spend.
As a result, gains are already showing up across Asia. Samsung Electronics and SK Hynix have both reported strong profit growth, helped by rising AI demand.
In summary, Nvidia remains at the center of the AI buildout. However, a growing share of the upside is now spread across Asia’s supply chain, as the next phase of AI moves into the physical world.
Is NVDA Stock a Strong Buy?
Turning to the Street, Nvidia Corporation holds a Strong Buy consensus. Of 42 analysts, 40 rate the stock a Buy, one a Hold, and one a Sell. The average NVDA stock price target is $274.38, implying a 38.26% upside from the current price.
