Asian tech stocks surge as SK hynix earnings fuel AI optimism

Technology firms surged across Asia on Wednesday after SK hynix reported blockbuster earnings that boosted confidence in the artificial intelligence trade. The South Korean chipmaker’s third-quarter operating profit soared 632% to US$62.8 billion (€54.2 billion), driven by explosive demand for advanced semiconductors. The company posted record revenue and operating profit for six straight quarters.

SK hynix shares jumped almost 9%, while rival Samsung, which reports on Thursday, added more than 8%. Seoul’s Kospi index climbed more than 6%. In Japan, the Nikkei 225 rose over 1%, with Kioxia soaring more than 10%, Advantest gaining 3%, and Tokyo Electron up 4%. Taipei was pulled sharply higher by TSMC’s strong performance, and markets in Hong Kong, Shanghai, Sydney, Singapore, and Wellington also advanced.

AI investment confidence reinforced

The rally came as investors awaited earnings from Microsoft and Alphabet later in the day, with Amazon, Apple, and Intel to follow on Thursday. The AI sector had wobbled this month on worries about investment spending and profitability, but AI-linked firms are back on the front foot. Anthropic, the parent behind Claude AI, said on Monday in an IPO filing that first-half revenue surged about 1,300%, though it flagged heavy capital spending ahead.

Broadcom announced on Tuesday, alongside Citi, Blackstone, and Morgan Stanley, a US$63 billion (€54.4 billion) financing structure to build new capacity for Anthropic. Stephen Innes of SPI Asset Management said that while Wall Street argues over whether the AI arms race can keep financing itself, SK hynix has reminded the market that somebody on the other side of all that capex is receiving the cheque. In New York, the Nasdaq added more than 1%. Traders were also awaiting the Federal Reserve policy decision on Wednesday, with the central bank expected to hold rates steady. Markets are pricing in a rate hike in December, and investors will scrutinise the post-meeting statement and comments from Chair Kevin Warsh.

Crude prices jumped more than 1% as Israel’s election results rolled in. Polls appeared to show Prime Minister Benjamin Netanyahu’s Likud party and the opposition neck and neck. Netanyahu vowed to form a new coalition and said he could work with US President Donald Trump to eliminate the “existential threat” posed by Iran. Opposition candidate Gadi Eisenkot said the country had chosen change and that he would seek to form a new administration.