Asian semiconductor stocks rallied sharply on Thursday after Nvidia reported stronger-than-expected quarterly results, helping calm concerns that rapid investment in artificial intelligence could be forming a market bubble.
The surge lifted major technology indexes across the region, reflecting renewed confidence in the global chip cycle and continued momentum in AI infrastructure spending.
Broad-based rally across Asian chipmakers
Shares of leading Asian chip companies jumped, led by South Korea’s SK Hynix, which surged 4%.
The company is Nvidia’s primary supplier of high-bandwidth memory (HBM), a crucial component in AI accelerators.
Samsung Electronics, another major memory supplier racing to close the HBM technology gap with SK Hynix, climbed 6.2%.
In Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC), which manufactures most of Nvidia’s chip designs, rose 3.94% in Taipei.
Hon Hai Precision Industry (Foxconn), a key producer of server racks used for AI data centers, gained more than 3.2%.
Japan also saw significant moves: Renesas Electronics advanced about 1.4%, equipment maker Tokyo Electron added nearly 4.8%, and Lasertec rose roughly 5.7%.
The gains helped propel broader markets higher.
Taiwan’s TAIEX and South Korea’s KOSPI each advanced more than 3%, while Japan’s Nikkei regained the 50,000 level with a rise of over 3%.
AI-linked heavyweight Advantest climbed 8%, and SoftBank Group—despite having sold its Nvidia stake—jumped 2.6%, supported by its exposure to Arm and various AI ventures, including the $500 billion Stargate data-center initiative.
Nvidia earnings boost market sentiment
The market rally followed Nvidia’s third-quarter earnings report on Wednesday, which exceeded Wall Street expectations and delivered a stronger sales forecast for the fourth quarter.
The company projected revenue of about $65 billion, versus analysts’ estimates of approximately $61.66 billion.
Nvidia shares rose 5% in extended US trading.
Analysts said the results should ease immediate worries about an overheated AI sector.
Rolf Bulk, an equity research analyst at New Street Research, said in a CNBC report that Nvidia’s performance reflects broad and diversified demand—from AI-native firms deploying agentic AI to enterprises embedding AI into existing products.
Bulk expects Nvidia’s strong outlook to lift earnings estimates across the supply chain, benefiting TSMC, SK Hynix, Samsung, and a wide set of Asian component and assembly providers.
AI spending remains strong despite bubble concerns
The earnings report arrives amid heightened debate over whether AI infrastructure spending has run too far, too fast.
Recent sell-offs and profit-taking among major tech names have driven investor caution, with some prominent investors trimming positions in high-valuation companies.
But Nvidia CEO Jensen Huang pushed back against bubble concerns, telling investors: “From our vantage point, we see something very different.”
Market strategists echoed that view.
Chris Zaccarelli, chief investment officer at Northlight Asset Management, said in the report that despite fears of an AI bubble, the world’s largest technology firms remain highly profitable and are investing heavily in data centers, servers, and compute hardware—spending he described as “real.”
Cloud providers, including Microsoft and Amazon, continue to pour billions into AI data-center infrastructure, even as some investors question accounting changes that extend the depreciable life of AI hardware such as Nvidia’s chips.
For now, Nvidia’s results have helped restore optimism across global tech markets, signaling that demand for AI hardware remains robust and the sector’s growth trajectory intact.
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