Asian technology stocks rallied on Wednesday after stronger-than-expected third-quarter results from SK Hynix reinforced optimism around artificial intelligence demand, giving semiconductor shares another boost amid growing concerns for the AI trade.
At the time of writing, South Korea’s Kospi surged more than 6.84%, putting the benchmark on track for its biggest single-day percentage gain since July 31.
Japan’s Nikkei 225 rose 1.22%, while MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 1.7%.
Chipmakers led gains in Japan, with Kioxia Holdings shares surging more than 12.4% and Taiyo Yuden climbing close to 8%.
Elsewhere, China’s CSI 300 blue-chip index gained 0.7%, while Hong Kong’s Hang Seng Index edged up 0.24%.
The gains reflected broader strength across the region, although tech stocks remained the main drivers of the rally.
SK Hynix results fuel AI optimism
The main trigger for the rally was a strong third-quarter performance from South Korean memory-chip maker SK Hynix, which reported a sharp increase in profits as demand for chips used in AI infrastructure continued to grow.
Shares were up 11.4% at the time of writing.
SK Hynix reported an operating profit of 83.3 trillion won, exceeding Bloomberg estimates of 77.5 trillion won. Revenue rose 328% to 104.6 trillion won, while net income climbed 216% to 39.78 trillion won.
The company also outlined plans to return a total of 100 trillion won to shareholders this year, further adding to the sentiment.
SK Hynix said its supplies of high-bandwidth memory (HBM) and dynamic random-access memory (DRAM) chips were sold out through 2029.
It also stated that HBM demand was twice the amount it could supply and warned that a chip shortage could continue through 2030.
The results provided fresh support for AI-related stocks in a week that has already seen encouraging developments for the sector.
News of Anthropic’s initial public offering filing had also lifted sentiment, reinforcing investor interest in companies expected to benefit from continued AI investment.
Samsung climbs ahead of earnings
Samsung Electronics shares rose as much as 7.9% ahead of the company’s third-quarter results, extending gains across South Korean semiconductor stocks.
The company has forecast a preliminary third-quarter operating profit of 107.40 trillion Korean won, up roughly 783% compared to the same period last year
Investors are looking for further evidence that spending on AI infrastructure is translating into sustained demand for advanced chips and memory products.
Results from major chipmakers have become an important gauge of the durability of the AI investment cycle.
US stock futures mixed
US equity futures were mixed early Wednesday. S&P 500 futures edged higher, while Nasdaq-100 futures rose 0.5%. Dow Jones Industrial Average futures slipped 0.2%.
The contrasting moves suggested a more cautious start for US markets even as Asian technology stocks rallied on the back of SK Hynix’s results.
Alphabet and Microsoft will kick off Big Tech earnings after the markets close on Wednesday as investors will keenly look at the numbers to find clues on whether the immense spending on AI is bringing desired results.
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