Nvidia "submits" to ease AI concerns, Japanese and South Korean tech stocks strengthen, South Korean stock index hits new high, US dollar weakens

Nvidia’s strong earnings boost market confidence, with Asian tech stocks rising across the board in Thursday morning trading, led by gains in South Korean and Japanese chip-related stocks.

During Thursday’s Asia-Pacific session, the MSCI Asia-Pacific Index rose 1%, hitting a record high; South Korea’s KOSPI increased 1.77%, continuing to reach new highs.

(South Korea’s KOSPI up over 1.7%)

Nvidia’s earnings report has had the most direct positive impact on the Asian AI supply chain. SK Hynix, a key supplier of high-bandwidth memory for Nvidia, rose more than 2% in early trading; Samsung Electronics gained over 5%. South Korean component manufacturer LG Innotek surged nearly 14%, and Seoul Semiconductor soared 13%.

(South Korea’s memory chip giants Samsung Electronics and SK Hynix continue to rise throughout the day)

Wedbush Securities senior equity analyst Dan Ives said:

Given the explosive growth in data center demand, this is a positive signal for many Asian supply chain companies including SK Hynix and Samsung.

Niles Investment Management portfolio manager Dan Niles pointed out that the current market landscape still favors semiconductor infrastructure stocks over software stocks, and he still considers Nvidia to be “the true king of all this infrastructure.”

The Japanese market also saw significant gains. The Nikkei 225 index rose sharply but closed with a gain of 0.55%. The Tokyo Stock Exchange Information & Communication Index increased over 2%, continuing the 0.58% rise from the previous trading day. SoftBank Group gained 4%, and Sony Group rose about 3%.

(Nikkei 225 up 0.55%)

Andrew Jackson, head of Japan equity strategies at ORTUS Advisors, said, Funds will continue to flow into AI-related stocks, and he is optimistic about Japanese companies in the gallium nitride and silicon carbide sectors, such as Fuji Electric, believing investors are positioning for a sustained data center construction cycle.

However, Bloomberg strategist Tatiana Darie pointed out that Nvidia’s overall performance remains solid, but some on Wall Street are disappointed that the company has not provided more details on its outlook and driving factors. In her view, while this earnings report can somewhat ease AI-related anxieties, concerns about the competitive landscape and the sustainability of infrastructure investments will persist.

Daiwa Securities chief strategist Yugo Tsuboi also remains cautious:

The difficulty of capital flowing back into this sector is gradually increasing, and it is no longer as smooth as last year. Ultimately, worries about overinvestment and the sustainability of investments have not dissipated despite Nvidia’s results.

On a broader market level, the US dollar continued to weaken during Thursday’s Asia-Pacific session, with the Bloomberg Dollar Spot Index down 0.2%. ICE US Dollar Index fell 0.12%.

Gold rose 0.2% to $5,176 per ounce, as traders assess tensions in the Middle East and the impact of US tariffs on global trade. Bitcoin’s rebound momentum slowed, dropping about 1% and falling below $68,000.

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