Nvidia's Strong Quarter Ignites Asian Tech Rally

A wave of relief swept through Asian tech markets Thursday morning, propelled by blockbuster earnings from chip giant Nvidia. The results, which surpassed analyst forecasts, reassured investors that demand for artificial intelligence hardware remains robust.

In Seoul, shares of key Nvidia suppliers led the charge. Samsung Electronics climbed approximately 5%, while SK Hynix, a vital producer of high-bandwidth memory for AI systems, gained more than 2%. Other South Korean tech firms saw even sharper increases, with LG Innotek and Seoul Semiconductor soaring by nearly 14% and 13%, respectively.

The momentum extended to Japan. The TOPIX Information & Communication index rose 2.6%, with notable gains from SoftBank Group, up 5%, and Sony Group, which increased almost 4%. Analysts pointed to a sustained investor focus on companies linked to AI and data center expansion. "Capital continues to flow toward AI-related players," noted Andrew Jackson of ORTUS Advisors, highlighting specific materials and component manufacturers positioned to benefit.

Nvidia's report showed a 73% year-over-year revenue jump to $68.13 billion, with its data center unit now accounting for over 91% of sales. This performance underscored the company's dominant position in supplying the foundational technology for AI. "Nvidia is still the essential infrastructure provider for this entire cycle," said portfolio manager Dan Niles. While most of the sector rallied, some Japanese chipmakers, including Advantest and Renesas, closed slightly lower.

Source: CNBC