Asia Tech Stocks Rally After Nvidia Earnings Ease AI Slowdown Fears

Asian technology stocks climbed sharply in early Thursday trading after better-than-expected earnings from Nvidia reassured investors that demand for artificial intelligence infrastructure remains strong.

Shares of South Korean semiconductor giants SK Hynix and Samsung Electronics rose more than 2% and 5% respectively. SK Hynix is a key supplier of high-bandwidth memory used in Nvidia’s AI chips, while Samsung maintains a long-standing partnership with the US chipmaker.

The rally extended across South Korea’s technology sector. LG Innotek surged nearly 14%, and Seoul Semiconductor jumped 13% in early trade.

In Japan, the TOPIX Information & Communication Index climbed 2.6%, building on gains from the previous session. Software firm Trend Micro advanced almost 6%, while Sony Group gained nearly 4%. Investment group SoftBank Group added about 5%.

Nvidia reported that its fiscal fourth-quarter revenue rose 73% year-on-year to $68.13 billion, exceeding market expectations. The company also issued strong forward guidance, with more than 90% of its revenue now coming from its data center division, which houses its AI chips.

The upbeat results helped calm fears that heavy global investment in AI infrastructure could be slowing. Recent volatility in tech markets had been driven by concerns over sustainability of spending and potential oversupply in the semiconductor sector.

Analysts said Nvidia’s performance provided a positive signal for Asia’s broader semiconductor supply chain. Demand for data centers and AI-related infrastructure continues to underpin growth expectations for memory and advanced chip manufacturers.

In Japan, investors also rotated into AI-linked industrial names. Shares of Fuji Electric, which produces components used in data centers, rose 1.7%.

However, not all chip stocks participated in the rally. Advantest and Renesas Electronics declined 2.35% and 1.75%, respectively.

Market participants said the latest earnings reinforced Nvidia’s dominant position in AI hardware infrastructure and strengthened investor appetite for semiconductor names tied to data center expansion across Asia.