Asian Chip Stocks Soar After Nvidia Earnings!
Asian chip stocks opened higher on Thursday after Nvidia reported better-than-expected results and provided a highly optimistic outlook, reinforcing market confidence in the global AI-driven trading theme. Nvidia shares rose more than 4% in after-market trading after its third-quarter earnings and revenue beat expectations, along with a higher-than-expected fourth-quarter sales projection. CEO Jensen Huang called demand for Blackwell's next-generation chips "off the charts."
In Japan, the Nikkei 225 index jumped as much as 3.7% early in the session, while the Topix index rose about 1.67%. Chip-related stocks led the gains, with SoftBank surging 8%, Tokyo Electron nearly 7%, Lasertec rising more than 5%, and Renesas gaining about 4.8%. Positive sentiment also spread to South Korea, where the Kospi index rose 2.63% and the Kosdaq index strengthened 1.75%, driven by gains in memory giants SK Hynix and Samsung Electronics, which rose more than 6% and 3.3%, respectively.
In Australia, the ASX/S&P 200 index also strengthened by around 1%. However, in Hong Kong, Hang Seng futures indicated a slightly lower opening, trading at around 25,820, slightly below the previous close of 25,830.65. Nevertheless, overall regional sentiment remained buoyed by euphoria surrounding Nvidia's report.
The positive impact of the report was also felt on Wall Street. Overnight, the S&P 500 index rose 0.38%, breaking a four-day downtrend. The Nasdaq Composite gained 0.59%, while the Dow Jones added around 47 points, or 0.1%. US stock futures rebounded in the Asian session, amid hopes that the AI shopping trend will continue.
While Nvidia's numbers look very strong, some analysts caution that the market remains uncertain: are Nvidia's growth and market share nearing a peak? Concerns about its high valuation, debt financing needs, and the risk of chip depreciation remain issues under scrutiny, although for now, Nvidia's report has clearly re-injected confidence into the technology sector and global chip stocks. (asd)
Source: Bloomberg.com
