Asian technology shares rallied on Thursday, riding a wave of AI optimism after Nvidia's stunning quarterly results. The chipmaker's earnings beat expectations and its outlook underscored sustained demand for artificial intelligence hardware, lifting sentiment across the region's tech supply chain.
Nvidia's results fuel regional gains
Markets from Tokyo to Seoul and Taipei advanced, with heavyweights in the semiconductor and electronics sectors leading the charge. Nvidia's report, released after the US close, showed record revenue and robust guidance, reinforcing confidence in the AI boom that has powered global equity markets.
In Japan, chip-related stocks and technology exporters climbed, while South Korea's Samsung Electronics and SK Hynix also traded higher. Taiwan's TSMC, a key Nvidia supplier, saw its shares rise amid expectations of sustained orders.
Jackson Hole in focus
Investors also digested signals from the Federal Reserve's Jackson Hole symposium, where policymakers discussed the path for interest rates. Comments from central bank officials were seen as supportive for risk assets, with markets still pricing in a possible rate cut later this year.
The combination of strong corporate earnings and a less hawkish Fed tone helped offset concerns about global growth. However, some analysts cautioned that valuations in the AI sector remain stretched, and a pullback could occur if earnings fail to keep pace with expectations.
By the close of Asian trading, major indices were firmly in positive territory, with the tech-heavy benchmarks posting some of the largest gains. The rally is expected to extend into European and US sessions, with futures pointing to a firmer open on Wall Street.
